Myers Industries (NYSE:MYE – Get Free Report) and Graphic Packaging (NYSE:GPK – Get Free Report) are both materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.
Profitability
This table compares Myers Industries and Graphic Packaging’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Myers Industries | 4.86% | 19.86% | 6.88% |
| Graphic Packaging | 3.17% | 12.62% | 3.50% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Myers Industries and Graphic Packaging, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Myers Industries | 0 | 2 | 1 | 0 | 2.33 |
| Graphic Packaging | 3 | 9 | 0 | 0 | 1.75 |
Dividends
Myers Industries pays an annual dividend of $0.54 per share and has a dividend yield of 1.5%. Graphic Packaging pays an annual dividend of $0.44 per share and has a dividend yield of 3.7%. Myers Industries pays out 55.7% of its earnings in the form of a dividend. Graphic Packaging pays out 47.8% 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. Graphic Packaging has increased its dividend for 1 consecutive years. Graphic Packaging is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
Myers Industries has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Graphic Packaging has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500.
Insider & Institutional Ownership
90.8% of Myers Industries shares are owned by institutional investors. Comparatively, 99.7% of Graphic Packaging shares are owned by institutional investors. 1.9% of Myers Industries shares are owned by insiders. Comparatively, 1.5% of Graphic Packaging shares are owned 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.
Earnings & Valuation
This table compares Myers Industries and Graphic Packaging”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Myers Industries | $825.74 million | 1.67 | $34.93 million | $0.97 | 37.77 |
| Graphic Packaging | $8.65 billion | 0.41 | $444.00 million | $0.92 | 12.90 |
Graphic Packaging has higher revenue and earnings than Myers Industries. Graphic Packaging is trading at a lower price-to-earnings ratio than Myers Industries, indicating that it is currently the more affordable of the two stocks.
Summary
Myers Industries beats Graphic Packaging on 11 of the 17 factors compared between the two stocks.
About Myers Industries
Myers Industries, Inc. engages in distribution of tire service supplies in Ohio. It operates through two segments, The Material Handling and Distribution. The Material Handling segment offers pallets, small parts bins, bulk shipping containers, and OEM parts, as well as storage and organization, and custom plastic products; and injection molded, rotationally molded or blow molded products, consumer fuel containers and tanks for water, fuel, and waste handling. It serves industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational and marine vehicles, healthcare, appliance, bakery, electronics, textiles, consumer markets, and other markets under Akro-Mils, Jamco, Buckhorn, Ameri-Kart, Scepter, Elkhart Plastics, Trilogy Plastics, and Signature Systems brands directly to end-users, as well as through distributors. The Distribution segment engages in the distribution of tools, equipment, and supplies for tire, wheel, and under-vehicle service on passenger, heavy truck, and off-road vehicles; and manufacture and sale of tire repair materials and custom rubber products, as well as reflective highway marking tapes under the Myers Tire Supply, Myers Tire Supply International, Tuffy Manufacturing, Mohawk Rubber Sales, Patch Rubber Company, Elrick, Fleetline, MTS, Seymoure, Advance Traffic Markings, and MXP brands. This segment serves retail and truck tire dealers, commercial auto and truck fleets, auto dealers, general service and repair centers, tire re-treaders, truck stop operations, and government agencies. Myers Industries, Inc. was founded in 1933 and is headquartered in Akron, Ohio.
About Graphic Packaging
Graphic Packaging Holding Company, together with its subsidiaries, designs, produces, and sells consumer packaging products to brands in food, beverage, foodservice, household, and other consumer products. It operates through three segments: Paperboard Manufacturing, Americas Paperboard Packaging, and Europe Paperboard Packaging. The company offers unbleached, bleached, and recycled paperboard to various paperboard packaging converters and brokers. It also provides paperboard packaging products for consumer packaged goods companies; and cups, lids, and food containers for foodservice companies and quick-service restaurants serving the food, beverage, and consumer product markets, including healthcare and beauty. The company also designs, manufactures, and installs specialized packaging machines. The company sells its products through sales offices, as well as through broker arrangements with third parties in the Americas, Europe, and the Asia Pacific. Graphic Packaging Holding Company was incorporated in 2007 and is headquartered in Atlanta, Georgia.
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