Sealed Air Corporation (SEE) versus Greif Bros. Corporation (GEF) Financial Analysis
Sealed Air Corporation (NYSE: SEE) and Greif Bros. Corporation (NYSE:GEF) are both mid-cap industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.
Earnings & Valuation
This table compares Sealed Air Corporation and Greif Bros. Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sealed Air Corporation||$6.84 billion||1.25||$1.07 billion||$1.93||23.29|
|Greif Bros. Corporation||$3.42 billion||0.82||$447.50 million||$1.59||36.84|
Sealed Air Corporation has higher revenue and earnings than Greif Bros. Corporation. Sealed Air Corporation is trading at a lower price-to-earnings ratio than Greif Bros. Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Sealed Air Corporation and Greif Bros. Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sealed Air Corporation||6.81%||84.32%||5.88%|
|Greif Bros. Corporation||2.65%||15.78%||4.80%|
Insider & Institutional Ownership
92.2% of Sealed Air Corporation shares are owned by institutional investors. Comparatively, 47.8% of Greif Bros. Corporation shares are owned by institutional investors. 1.1% of Sealed Air Corporation shares are owned by company insiders. Comparatively, 16.8% of Greif Bros. Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Sealed Air Corporation has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Greif Bros. Corporation has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.
This is a summary of recent recommendations for Sealed Air Corporation and Greif Bros. Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sealed Air Corporation||0||6||4||0||2.40|
|Greif Bros. Corporation||1||3||3||0||2.29|
Sealed Air Corporation presently has a consensus price target of $49.00, suggesting a potential upside of 9.01%. Greif Bros. Corporation has a consensus price target of $57.00, suggesting a potential downside of 2.68%. Given Sealed Air Corporation’s stronger consensus rating and higher probable upside, equities analysts plainly believe Sealed Air Corporation is more favorable than Greif Bros. Corporation.
Sealed Air Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 1.4%. Greif Bros. Corporation pays an annual dividend of $1.68 per share and has a dividend yield of 2.9%. Sealed Air Corporation pays out 33.2% of its earnings in the form of a dividend. Greif Bros. Corporation pays out 105.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Sealed Air Corporation beats Greif Bros. Corporation on 12 of the 16 factors compared between the two stocks.
About Sealed Air Corporation
Sealed Air Corporation is engaged in food safety and security, facility hygiene and product protection business. The Company’s segments are Food Care, Diversey Care, Product Care and Other (includes Corporate, Medical Applications and New Ventures businesses). The Food Care segment focuses on providing a range of integrated system solutions. The Food Care business serves primarily perishable food and beverage processors, predominately in fresh red meat, smoked and processed meats, beverages, poultry and dairy (solids and liquids) markets throughout the world. The Diversey Care segment integrates cleaning chemicals, floor care machines, cleaning tools and equipment, and a range of services, including application and employee training, auditing of hygiene and appearance, and water and energy management. The Product Care segment provides customers with a range of Product Care solutions to meet cushioning, void fill, surface protection, retail display, containment and dunnage needs.
About Greif Bros. Corporation
Greif, Inc. is a producer of industrial packaging products and services. The Company’s segments are Rigid Industrial Packaging & Services; Paper Packaging & Services; Flexible Products & Services, and Land Management. The Rigid Industrial Packaging & Services segment is engaged in the production and sale of rigid industrial packaging products, and services, such as container life cycle management, filling, logistics, warehousing and other packaging services. The Paper Packaging & Services segment is engaged in the production and sale of containerboard, corrugated sheets, corrugated containers and other corrugated products. The Flexible Products & Services segment is engaged in the production and sale of flexible intermediate bulk containers and related services on a global basis. The Land Management segment is involved in the management and sale of timber. As of October 31, 2016, the Company had operations in over 45 countries.
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