Silgan Holdings (SLGN) vs. Crown Holdings (NYSE:CCK) Critical Comparison
Silgan Holdings (NASDAQ: SLGN) and Crown Holdings (NYSE:CCK) are both mid-cap industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitabiliy, valuation, earnings and risk.
Insider and Institutional Ownership
34.1% of Silgan Holdings shares are held by institutional investors. Comparatively, 91.9% of Crown Holdings shares are held by institutional investors. 33.1% of Silgan Holdings shares are held by company insiders. Comparatively, 1.8% of Crown Holdings shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Silgan Holdings and Crown Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings for Silgan Holdings and Crown Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Silgan Holdings currently has a consensus price target of $30.21, suggesting a potential downside of 5.02%. Crown Holdings has a consensus price target of $63.50, suggesting a potential upside of 6.13%. Given Crown Holdings’ stronger consensus rating and higher probable upside, analysts clearly believe Crown Holdings is more favorable than Silgan Holdings.
Earnings & Valuation
This table compares Silgan Holdings and Crown Holdings’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Silgan Holdings||$3.63 billion||0.97||$476.83 million||$1.26||25.15|
|Crown Holdings||$8.29 billion||1.00||$1.33 billion||$3.49||17.14|
Crown Holdings has higher revenue and earnings than Silgan Holdings. Crown Holdings is trading at a lower price-to-earnings ratio than Silgan Holdings, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Silgan Holdings has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, Crown Holdings has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.
Silgan Holdings pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. Crown Holdings does not pay a dividend. Silgan Holdings pays out 28.5% of its earnings in the form of a dividend. Crown Holdings has raised its dividend for 13 consecutive years.
Crown Holdings beats Silgan Holdings on 14 of the 17 factors compared between the two stocks.
About Silgan Holdings
Silgan Holdings Inc. is a holding company. The Company is a manufacturer of rigid packaging for consumer goods products. The Company operates in three business segments: metal containers, closures and plastic containers. Its metal container segment is engaged in the manufacture and sale of steel and aluminum containers for human and pet food and general line products. Its closures segment manufactures and sells metal, composite and plastic closures for food and beverage products. Its plastic containers segment manufactures and sells custom designed plastic containers and closures for personal care, food, healthcare, pharmaceutical, household and industrial chemical, pet care, agricultural, automotive and marine chemical products. The Company is a manufacturer of metal containers in North America and Europe. As of December 31, 2016, the Company’s products were used for a range of end markets and it operated 87 manufacturing plants in North America, Europe, Asia and South America.
About Crown Holdings
Crown Holdings, Inc. is engaged in the design, manufacture and sale of packaging products for consumer goods. The Company’s business is organized within three divisions: Americas, Europe and Asia Pacific. Within each division, the Company is organized along product lines. The Company’s segments within the Americas Division are Americas Beverage and North America Food. The Company’s segments within the European Division are European Beverage and European Food. The Company’s Asia Pacific Division segment consists of its beverage and non-beverage can operations. The Company is also engaged in European aerosol and specialty packaging business, its North American aerosol can business, and its tooling and equipment operations in the Unites States and the United Kingdom. As of December 31, 2016, the Company operated 146 plants along with sales and service facilities throughout 36 countries. It also has three canmaking and spare part operations in the United States and the United Kingdom.
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