Westrock Company (NYSE: WRK) and Graphic Packaging Holding Company (NYSE:GPK) are both mid-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitabiliy, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Valuation and Earnings

This table compares Westrock Company and Graphic Packaging Holding Company’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Westrock Company $14.31 billion 1.03 $2.15 billion $0.71 84.01
Graphic Packaging Holding Company $4.33 billion 1.00 $707.80 million $0.65 21.37

Westrock Company has higher revenue and earnings than Graphic Packaging Holding Company. Graphic Packaging Holding Company is trading at a lower price-to-earnings ratio than Westrock Company, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for Westrock Company and Graphic Packaging Holding Company, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Westrock Company 0 2 8 1 2.91
Graphic Packaging Holding Company 0 2 8 0 2.80

Westrock Company currently has a consensus price target of $61.44, suggesting a potential upside of 3.01%. Graphic Packaging Holding Company has a consensus price target of $15.76, suggesting a potential upside of 13.43%. Given Graphic Packaging Holding Company’s higher possible upside, analysts plainly believe Graphic Packaging Holding Company is more favorable than Westrock Company.

Institutional and Insider Ownership

88.6% of Westrock Company shares are held by institutional investors. Comparatively, 95.4% of Graphic Packaging Holding Company shares are held by institutional investors. 2.7% of Westrock Company shares are held by company insiders. Comparatively, 1.0% of Graphic Packaging Holding Company shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Westrock Company has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Graphic Packaging Holding Company has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Profitability

This table compares Westrock Company and Graphic Packaging Holding Company’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Westrock Company 1.29% 6.35% 2.70%
Graphic Packaging Holding Company 4.80% 19.53% 4.52%

Dividends

Westrock Company pays an annual dividend of $1.60 per share and has a dividend yield of 2.7%. Graphic Packaging Holding Company pays an annual dividend of $0.30 per share and has a dividend yield of 2.2%. Westrock Company pays out 225.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Graphic Packaging Holding Company pays out 46.2% of its earnings in the form of a dividend.

Summary

Westrock Company beats Graphic Packaging Holding Company on 10 of the 16 factors compared between the two stocks.

Westrock Company Company Profile

WestRock Company, incorporated on March 6, 2015, is a multinational provider of paper and packaging solutions for consumer and corrugated packaging markets. The Company also develops real estate in the Charleston, South Carolina region. The Company’s segments include Corrugated Packaging, Consumer Packaging, and Land and Development. The Corrugated Packaging segment consists of its containerboard mill and corrugated packaging operations, as well as its recycling operations. The Consumer Packaging segment consists of consumer mills, folding carton, beverage, merchandising displays, and partition operations. The Land and Development segment is engaged in the development and sale of real estate primarily in Charleston, South Carolina.

Graphic Packaging Holding Company Company Profile

Graphic Packaging Holding Company is a provider of paper-based packaging solutions for a range of products to food, beverage and other consumer product companies. The Company’s segments include Paperboard Mills, Americas Paperboard Packaging, Europe Paperboard Packaging, and Corporate and Other. The Paperboard Mills segment includes the Company’s North American paperboard mills, which produce primarily coated unbleached kraft and coated recycled board. As of December 31, 2016, the Company had seven paperboard mills in North America. The Americas Paperboard Packaging segment includes paperboard folding cartons sold primarily to consumer packaged goods (CPG) companies serving the food, beverage and consumer product markets in the Americas. The Europe Paperboard Packaging segment includes paperboard folding cartons sold primarily to CPG companies serving the food, beverage and consumer product markets in Europe. The Corporate and Other segment includes the Pacific Rim operating segment.

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