Silgan Holdings (SLGN) & Ardagh Group (ARD) Head to Head Analysis
Silgan Holdings (NASDAQ: SLGN) and Ardagh Group (NYSE:ARD) 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 earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.
Silgan Holdings pays an annual dividend of $0.36 per share and has a dividend yield of 1.2%. Ardagh Group pays an annual dividend of $0.56 per share and has a dividend yield of 2.7%. Silgan Holdings pays out 29.0% of its earnings in the form of a dividend. Ardagh Group has raised its dividend for 13 consecutive years. Ardagh Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Silgan Holdings and Ardagh Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Silgan Holdings||$3.77 billion||0.87||$470.07 million||$1.24||23.92|
|Ardagh Group||$9.03 billion||0.54||$1.55 billion||N/A||N/A|
Ardagh Group has higher revenue and earnings than Silgan Holdings.
Insider & Institutional Ownership
67.0% of Silgan Holdings shares are held by institutional investors. Comparatively, 99.9% of Ardagh Group shares are held by institutional investors. 33.1% of Silgan Holdings shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Silgan Holdings and Ardagh Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and target prices for Silgan Holdings and Ardagh Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Silgan Holdings presently has a consensus target price of $31.36, indicating a potential upside of 5.72%. Ardagh Group has a consensus target price of $24.31, indicating a potential upside of 18.60%. Given Ardagh Group’s stronger consensus rating and higher probable upside, analysts clearly believe Ardagh Group is more favorable than Silgan Holdings.
Ardagh Group beats Silgan Holdings on 9 of the 14 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 Ardagh Group
Ardagh Group SA, formerly Ardagh Finance Holdings SA, is a Luxembourg-based company engaged in the packing industry. The Company focuses on the design and manufacture of rigid packaging solutions mainly for food and beverage markets. Its activities are divided into two business segments: Metal packing, which supplies aluminum and steel beverage cans, two-piece aluminum, two-piece tinplate and three-piece tinplate food and specialty cans, as well as a range of can ends, among others, and Glass packing, which delivers glass containers, bottles and jars, among others. Its products are distributed in customized sizes and shapes, as well as are decorated with printed graphics. The Company operates in Europe, the Americas, Asia and Africa.
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