Reviewing AptarGroup (NYSE:ATR) and Winpak (OTCMKTS:WIPKF)

AptarGroup (NYSE:ATR) and Winpak (OTCMKTS:WIPKF) are both materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Profitability

This table compares AptarGroup and Winpak’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AptarGroup	9.22%	13.31%	6.96%
Winpak	N/A	N/A	N/A

Dividends

AptarGroup pays an annual dividend of $1.92 per share and has a dividend yield of 1.4%. Winpak pays an annual dividend of $0.11 per share and has a dividend yield of 0.4%. AptarGroup pays out 34.7% of its earnings in the form of a dividend. Winpak pays out 9.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. AptarGroup has increased its dividend for 31 consecutive years. AptarGroup is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current recommendations for AptarGroup and Winpak, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AptarGroup	0	3	5	0	2.62
Winpak	0	2	0	0	2.00

AptarGroup currently has a consensus price target of $172.80, indicating a potential upside of 26.39%. Given AptarGroup’s stronger consensus rating and higher possible upside, analysts plainly believe AptarGroup is more favorable than Winpak.

Institutional and Insider Ownership

88.5% of AptarGroup shares are held by institutional investors. Comparatively, 21.0% of Winpak shares are held by institutional investors. 0.7% of AptarGroup shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares AptarGroup and Winpak”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AptarGroup	$3.78 billion	2.31	$392.79 million	$5.53	24.72
Winpak	N/A	N/A	N/A	$1.17	26.87

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

Summary

AptarGroup beats Winpak on 12 of the 14 factors compared between the two stocks.

About AptarGroup

AptarGroup, Inc. designs and manufactures a range of drug delivery, consumer product dispensing, and active material science solutions and services for the pharmaceutical, beauty, personal care, home care, and food and beverage markets. The company operates through Aptar Pharma, Aptar Beauty, and Aptar Closures segments. It also provides pumps for nasal allergy treatments; and metered dose inhaler valves for respiratory ailments, such as asthma and chronic obstructive pulmonary diseases; elastomer for injectable primary packaging components; and active material science solutions. In addition, the company offers dispensing pumps, closures, elastomeric components, and aerosol valves to the digital health solutions. It primarily sells its products and services in Asia, Europe, Latin America, and North America. AptarGroup, Inc. was incorporated in 1992 and is headquartered in Crystal Lake, Illinois.

About Winpak

Winpak Ltd. manufactures and distributes packaging materials and related packaging machines in the United States, Canada, and Mexico. The company operates is Flexible Packaging, Rigid Packaging and Flexible Lidding, and Packaging Machinery segments. The Flexible Packaging segment provides modified atmosphere packaging products for fresh and processed meats, poultry, cheese, medical device packaging, high-performance pouch, and high-barrier films for converting applications; specialty films, including barrier and non-barrier films converting applications, such as printing, laminating and bag making, as well as shrink bags; and biaxially oriented nylon films for food packaging and industrial applications. The Rigid Packaging and Flexible Lidding segment offers portion control and single-serve containers, as well as plastic sheet, custom, and retort trays; die-cut, daisy chain, and rollstock formats for food, dairy, beverage, pet food, industrial, and healthcare applications; and specialized printed packaging solutions for the pharmaceutical, healthcare, nutraceutical, cosmetic, and personal care markets. The Packaging Machinery segment provides horizontal fill/seal machines for preformed containers and vertical form/fill/seal pouch machines for pumpable liquid and semi-liquid, as well as various dry products. The company was incorporated in 1975 and is based in Winnipeg, Canada. Winpak Ltd. is a subsidiary of Wihuri International Oy.