Financial Comparison: Myers Industries (NYSE:MYE) versus Greif (NYSE:GEF)

Greif (NYSE:GEF) and Myers Industries (NYSE:MYE) are both materials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

45.7% of Greif shares are owned by institutional investors. Comparatively, 90.8% of Myers Industries shares are owned by institutional investors. 7.7% of Greif shares are owned by insiders. Comparatively, 1.9% of Myers Industries shares are owned by 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.

Profitability

This table compares Greif and Myers Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Greif	5.91%	7.78%	4.13%
Myers Industries	3.99%	20.34%	7.30%

Valuation & Earnings

This table compares Greif and Myers Industries”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greif	$4.38 billion	0.77	$258.50 million	$4.43	16.46
Myers Industries	$825.74 million	1.27	$34.93 million	$0.76	36.76

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

Risk & Volatility

Greif has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Myers Industries has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Dividends

Greif pays an annual dividend of $2.48 per share and has a dividend yield of 3.4%. Myers Industries pays an annual dividend of $0.54 per share and has a dividend yield of 1.9%. Greif pays out 56.0% of its earnings in the form of a dividend. Myers Industries pays out 71.1% 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. Greif has raised its dividend for 4 consecutive years. Greif is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Greif and Myers Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greif	2	2	2	0	2.00
Myers Industries	0	1	2	0	2.67

Greif currently has a consensus price target of $82.20, indicating a potential upside of 12.75%. Myers Industries has a consensus price target of $37.00, indicating a potential upside of 32.44%. Given Myers Industries’ stronger consensus rating and higher possible upside, analysts plainly believe Myers Industries is more favorable than Greif.

About Greif

Greif, Inc. is a global industrial packaging company that makes products used to store and transport goods. Its offerings include steel, plastic and fiber drums, intermediate bulk containers, jerrycans and other rigid packaging, as well as reconditioned containers and related services. The company also provides packaging accessories and services such as container filling, supply-chain support and packaging design. Greif serves customers in industries including chemicals, food and beverage, petroleum and pharmaceuticals.

About Myers Industries

Myers Industries, Inc. is an Ohio-based manufacturer of polymer products and distributor of supplies and equipment for the tire service industry. Founded in 1933, the company has expanded from its origins in tire repair into plastics manufacturing and material handling products. Its products include reusable plastic containers, pallets, bulk storage containers, and other material handling solutions, as well as rotationally molded products for industrial, agricultural, commercial, and consumer uses.