Financial Contrast: O-I Glass (NYSE:OI) vs. Smurfit Westrock (NYSE:SW)

Smurfit Westrock (NYSE:SW) and O-I Glass (NYSE:OI) are both materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Dividends

Smurfit Westrock pays an annual dividend of $1.81 per share and has a dividend yield of 4.0%. O-I Glass pays an annual dividend of $0.20 per share and has a dividend yield of 2.8%. Smurfit Westrock pays out 192.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. O-I Glass pays out -2.7% of its earnings in the form of a dividend.

Volatility & Risk

Smurfit Westrock has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, O-I Glass has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.

Insider & Institutional Ownership

83.4% of Smurfit Westrock shares are owned by institutional investors. Comparatively, 97.2% of O-I Glass shares are owned by institutional investors. 0.5% of Smurfit Westrock shares are owned by company insiders. Comparatively, 1.0% of O-I Glass shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Smurfit Westrock and O-I Glass’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smurfit Westrock	1.59%	4.60%	1.85%
O-I Glass	-18.13%	10.40%	1.43%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Smurfit Westrock and O-I Glass, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smurfit Westrock	0	2	11	0	2.85
O-I Glass	2	3	4	0	2.22

Smurfit Westrock currently has a consensus target price of $57.69, suggesting a potential upside of 26.94%. O-I Glass has a consensus target price of $10.31, suggesting a potential upside of 46.07%. Given O-I Glass’ higher possible upside, analysts clearly believe O-I Glass is more favorable than Smurfit Westrock.

Valuation and Earnings

This table compares Smurfit Westrock and O-I Glass”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smurfit Westrock	$31.18 billion	0.76	$699.00 million	$0.94	48.35
O-I Glass	$6.36 billion	0.17	-$129.00 million	($7.52)	-0.94

Smurfit Westrock has higher revenue and earnings than O-I Glass. O-I Glass is trading at a lower price-to-earnings ratio than Smurfit Westrock, indicating that it is currently the more affordable of the two stocks.

Summary

Smurfit Westrock beats O-I Glass on 11 of the 16 factors compared between the two stocks.

About Smurfit Westrock

Smurfit Westrock Plc, together with its subsidiaries, manufactures, distributes, and sells containerboard, corrugated containers, and other paper-based packaging products in Ireland and internationally. The company produces containerboard that it converts into corrugated containers or sells to third parties, as well as produces other types of paper, such as consumer packaging board, sack paper, graphic paper, solid board and graphic board, and other paper-based packaging products, such as consumer packaging, solid board packaging, paper sacks, and other packaging products, including bag-in-box. It also produces linerboard and corrugated medium, paperboard, and non-packaging grades of paper, as well as converted products, such as folding cartons and corrugated boxes, and other products; recycled paper-based packaging products; and packaging machinery. The company primarily serves food and beverage, e-commerce, retail, consumer goods, industrial, and foodservice markets. Smurfit Westrock Plc was founded in 1934 and is headquartered in Dublin, Ireland.

About O-I Glass

O-I Glass, Inc., through its subsidiaries, engages in the manufacture and sale of glass containers to food and beverage manufacturers primarily in the Americas, Europe, and internationally. The company produces glass containers for alcoholic beverages, including beer, flavored malt beverages, spirits, and wine. It is also involved in the production of glass packaging for various food items, soft drinks, tea, juices, and pharmaceuticals. In addition, the company offers glass containers in a range of sizes, shapes, and colors. It sells its products directly to customers under annual or multi-year supply agreements, as well as through distributors. O-I Glass, Inc. was founded in 1903 and is based in Perrysburg, Ohio.