AptarGroup (NYSE: ATR) and Myers Industries (NYSE:MYE) are both industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitabiliy, dividends, risk, analyst recommendations and institutional ownership.

Profitability

This table compares AptarGroup and Myers Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AptarGroup 9.09% 16.58% 7.86%
Myers Industries 1.38% 11.57% 2.85%

Institutional & Insider Ownership

90.2% of AptarGroup shares are held by institutional investors. Comparatively, 84.5% of Myers Industries shares are held by institutional investors. 5.3% of AptarGroup shares are held by company insiders. Comparatively, 0.8% of Myers Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

AptarGroup pays an annual dividend of $1.28 per share and has a dividend yield of 1.4%. Myers Industries pays an annual dividend of $0.54 per share and has a dividend yield of 2.9%. AptarGroup pays out 38.7% of its earnings in the form of a dividend. Myers Industries pays out 225.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AptarGroup has increased its dividend for 4 consecutive years and Myers Industries has increased its dividend for 7 consecutive years. Myers Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares AptarGroup and Myers Industries’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AptarGroup $2.35 billion 2.38 $475.05 million $3.31 27.03
Myers Industries $548.56 million 1.01 $57.90 million $0.24 76.46

AptarGroup has higher revenue and earnings than Myers Industries. AptarGroup is trading at a lower price-to-earnings ratio than Myers Industries, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

AptarGroup has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Myers Industries has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for AptarGroup and Myers Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AptarGroup 3 4 1 0 1.75
Myers Industries 1 0 1 0 2.00

AptarGroup currently has a consensus target price of $82.60, suggesting a potential downside of 7.67%. Myers Industries has a consensus target price of $13.00, suggesting a potential downside of 29.16%. Given AptarGroup’s higher possible upside, analysts plainly believe AptarGroup is more favorable than Myers Industries.

Summary

AptarGroup beats Myers Industries on 11 of the 16 factors compared between the two stocks.

AptarGroup Company Profile

AptarGroup, Inc. is a provider of a range of packaging, dispensing and sealing solutions, primarily for the beauty, personal care, homecare, prescription drug, consumer healthcare, injectables, food and beverage markets. The Company has manufacturing facilities located throughout the world, including North America, Europe, Asia and South America. The Company operates through three segments: Beauty + Home, Pharma and Food + Beverage. It offers various dispensing and sealing solutions. Its primary products are dispensing pumps, closures, aerosol valves and elastomeric primary packaging components. Its elastomeric components also include pre filled syringe components, such as plungers, needle shields, tip caps and cartridges, as well as dropper bulbs and syringe plungers. Its Beauty + Home segment primarily sells pumps, closures, aerosol valves, accessories and sealing solutions to the personal care and home care markets, and pumps and decorative components to the beauty market.

Myers Industries Company Profile

Myers Industries, Inc. is an international manufacturing and distribution company. The Company operates through two segments: Material Handling and Distribution. As of December 31, 2016, the Company operated 15 manufacturing facilities, 20 sales offices, four distribution centers and three distribution branches located throughout North, Central and South America. As of December 31, 2016, the Company had approximately 15,000 manufactured products and over 13,500 distributed products. The Material Handling segment designs, manufactures and markets a range of plastic and metal products. The Distribution Segment is engaged in the distribution of tools, equipment and supplies used for tire, wheel and under vehicle service on passenger, heavy truck and off-road vehicles, and the manufacturing of tire repair materials and custom rubber products. The product line includes categories, such as tire valves and accessories, and lifts and alignment equipment.

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