Critical Survey: MeadWestvaco Corp. (MWV) vs. Graphic Packaging Holding Company (GPK)
Graphic Packaging Holding Company (NYSE: GPK) and MeadWestvaco Corp. (NYSE:MWV) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitabiliy and institutional ownership.
Insider & Institutional Ownership
95.4% of Graphic Packaging Holding Company shares are held by institutional investors. 1.0% of Graphic Packaging Holding Company shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Graphic Packaging Holding Company and MeadWestvaco Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Graphic Packaging Holding Company||4.80%||19.53%||4.52%|
Valuation and Earnings
This table compares Graphic Packaging Holding Company and MeadWestvaco Corp.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Graphic Packaging Holding Company||$4.33 billion||1.00||$707.80 million||$0.65||21.37|
Graphic Packaging Holding Company has higher revenue and earnings than MeadWestvaco Corp..
This is a summary of current ratings and price targets for Graphic Packaging Holding Company and MeadWestvaco Corp., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Graphic Packaging Holding Company||0||2||8||0||2.80|
Graphic Packaging Holding Company currently has a consensus target price of $15.76, indicating a potential upside of 13.43%. Given Graphic Packaging Holding Company’s higher probable upside, equities analysts plainly believe Graphic Packaging Holding Company is more favorable than MeadWestvaco Corp..
Graphic Packaging Holding Company pays an annual dividend of $0.30 per share and has a dividend yield of 2.2%. MeadWestvaco Corp. does not pay a dividend. Graphic Packaging Holding Company pays out 46.2% of its earnings in the form of a dividend.
Graphic Packaging Holding Company beats MeadWestvaco Corp. on 9 of the 10 factors compared between the two stocks.
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.
MeadWestvaco Corp. Company Profile
MeadWestvaco Corporation (MWV) is a global packaging company. The company’s segments include Food & Beverage, Home, Health & Beauty, Industrial, Specialty Chemicals, and Community Development and Land Management. The Food & Beverage segment produces packaging materials, and designs and produces packaging solutions for the food, food service, beverage, dairy, tobacco end markets and paperboard for commercial printing. The Home, Health & Beauty segment offers packaging solutions for the personal care, fragrance, home care, lawn and garden, prescription drug and healthcare end markets. The Industrial segment designs and produces corrugated packaging solutions, for produce, meat, consumer products and bulk goods. The Specialty Chemicals segment manufactures, markets and distributes specialty chemicals. The Community Development and Land Management segment is responsible for maximizing the value of its 94,000 development acres in the Charleston, South Carolina region.
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