Greif (NYSE:GEF.B) and Graphic Packaging (NYSE:GPK) are both mid-cap industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares Greif and Graphic Packaging’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Greif 5.26% 17.84% 6.03%
Graphic Packaging 6.18% 11.90% 3.56%

Institutional & Insider Ownership

5.6% of Greif shares are held by institutional investors. Comparatively, 99.4% of Graphic Packaging shares are held by institutional investors. 16.2% of Greif shares are held by company insiders. Comparatively, 0.6% of Graphic Packaging shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Greif and Graphic Packaging, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Greif 0 0 0 0 N/A
Graphic Packaging 0 1 7 0 2.88

Graphic Packaging has a consensus price target of $17.36, suggesting a potential upside of 52.52%. Given Graphic Packaging’s higher possible upside, analysts plainly believe Graphic Packaging is more favorable than Greif.

Dividends

Greif pays an annual dividend of $2.64 per share and has a dividend yield of 5.1%. Graphic Packaging pays an annual dividend of $0.30 per share and has a dividend yield of 2.6%. Graphic Packaging pays out 47.6% of its earnings in the form of a dividend. Graphic Packaging has increased its dividend for 2 consecutive years.

Valuation and Earnings

This table compares Greif and Graphic Packaging’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Greif $3.64 billion 0.68 $118.60 million N/A N/A
Graphic Packaging $4.40 billion 0.80 $300.20 million $0.63 18.06

Graphic Packaging has higher revenue and earnings than Greif.

Risk and Volatility

Greif has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Graphic Packaging has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Summary

Graphic Packaging beats Greif on 10 of the 15 factors compared between the two stocks.

Greif Company Profile

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.

Graphic Packaging Company Profile

Graphic Packaging Holding Company, together with its subsidiaries, provides paper-based packaging solutions to food, beverage, and other consumer products companies. It operates through three segments: Paperboard Mills, Americas Paperboard Packaging, and Europe Paperboard Packaging. The company offers coated unbleached kraft (CUK) and coated recycled paperboard (CRB) to various paperboard packaging converters and brokers; and paperboard packaging folding cartons primarily to consumer packaged goods companies. It also manufactures corrugated medium products; offers various laminated, coated, and printed packaging structures that are produced from its CUK and CRB, as well as other grades of paperboards that are purchased from third-party suppliers; designs and manufactures specialized packaging machines that package bottles and cans, and non-beverage consumer products; and installs its packaging machines at customer plants and provides support, service, and performance monitoring of the machines. The company markets its products primarily through sales offices and broker arrangements with third parties in the Americas, Europe, and the Asia Pacific. Graphic Packaging Holding Company was founded in 1992 and is headquartered in Atlanta, Georgia.

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