Analyzing Amcor (NYSE:AMCR) and Silgan (NYSE:SLGN)

Amcor (NYSE:AMCR) and Silgan (NYSE:SLGN) are both materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Earnings and Valuation

This table compares Amcor and Silgan”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amcor	$15.01 billion	1.43	$511.00 million	$1.43	32.51
Silgan	$6.68 billion	0.64	$288.40 million	$2.55	15.92

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

Risk & Volatility

Amcor has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Silgan has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Dividends

Amcor pays an annual dividend of $2.60 per share and has a dividend yield of 5.6%. Silgan pays an annual dividend of $0.84 per share and has a dividend yield of 2.1%. Amcor pays out 181.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Silgan pays out 32.9% of its earnings in the form of a dividend. Amcor has increased its dividend for 5 consecutive years and Silgan has increased its dividend for 22 consecutive years.

Insider & Institutional Ownership

45.1% of Amcor shares are owned by institutional investors. Comparatively, 70.3% of Silgan shares are owned by institutional investors. 0.3% of Amcor shares are owned by company insiders. Comparatively, 1.1% of Silgan shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Amcor and Silgan, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amcor	0	6	8	1	2.67
Silgan	0	3	8	1	2.83

Amcor currently has a consensus price target of $48.74, indicating a potential upside of 4.85%. Silgan has a consensus price target of $54.00, indicating a potential upside of 33.04%. Given Silgan’s stronger consensus rating and higher possible upside, analysts plainly believe Silgan is more favorable than Amcor.

Profitability

This table compares Amcor and Silgan’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amcor	3.06%	14.55%	4.57%
Silgan	4.05%	16.74%	4.09%

Summary

Silgan beats Amcor on 10 of the 16 factors compared between the two stocks.

About Amcor

Amcor plc develops, produces, and sells packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions. The company operates through two segments, Flexibles and Rigid Packaging. The Flexibles segment provides flexible and film packaging products in the food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries. The Rigid Packaging segment offers rigid containers for various beverage and food products, including carbonated soft drinks, water, juices, sports drinks, milk-based beverages, spirits and beer, sauces, dressings, spreads, and personal care items; and plastic caps for various applications. The company sells its products through its direct sales force. Amcor plc was incorporated in 2018 and is headquartered in Zurich, Switzerland.

About Silgan

Silgan Holdings Inc., together with its subsidiaries, manufactures and sells rigid packaging solutions for consumer goods products in the United States and internationally. It operates through three segments: Dispensing and Specialty Closures, Metal Containers, and Custom Containers. The Dispensing and Specialty Closures segment offers a range of metal and plastic closures, and dispensing systems for food, beverage, health care, garden, home, personal care, beauty products, and hard surface cleaning products, as well as capping/sealing equipment and detection systems. The Metal Containers segment manufactures and sells steel and aluminum containers for food products, such as pet food, vegetables, soups, proteins, fruits, and other miscellaneous food products, as well as general line metal containers primarily for chemicals. The Custom Containers segment manufactures and sells custom designed and stock plastic containers for use in personal care and health care; food and beverage; household and industrial chemical; pharmaceutical; pet food and care; agricultural; automotive. This segment also provides thermoformed barrier and non-barrier bowls, and trays for food products, such as soups, other ready-to-eat meals, and pet food products; and plastic closures, caps, sifters, and fitments, as well as thermoformed tubs for food, household, and personal care products. The company markets its products primarily through direct sales force, as well as through a network of distributors, and an online shopping catalog. The company was founded in 1987 and is headquartered in Stamford, Connecticut.