Comparing Packaging Corporation of America (NYSE:PKG) and CCL Industries (OTCMKTS:CCDBF)

Packaging Corporation of America (NYSE:PKG) and CCL Industries (OTCMKTS:CCDBF) are both large-cap materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Dividends

Packaging Corporation of America pays an annual dividend of $6.00 per share and has a dividend yield of 2.6%. CCL Industries pays an annual dividend of $1.04 per share and has a dividend yield of 1.6%. Packaging Corporation of America pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CCL Industries pays out 40.2% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Packaging Corporation of America and CCL Industries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Packaging Corporation of America	$9.53 billion	2.15	$774.10 million	$7.70	29.81
CCL Industries	$5.48 billion	1.88	$574.28 million	$2.59	25.41

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

Institutional and Insider Ownership

89.8% of Packaging Corporation of America shares are held by institutional investors. 1.6% of Packaging Corporation of America shares are held by 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 Recommendations

This is a breakdown of current recommendations and price targets for Packaging Corporation of America and CCL Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Packaging Corporation of America	0	3	6	1	2.80
CCL Industries	0	1	4	0	2.80

Packaging Corporation of America currently has a consensus price target of $270.43, indicating a potential upside of 17.80%. Given Packaging Corporation of America’s higher possible upside, equities analysts plainly believe Packaging Corporation of America is more favorable than CCL Industries.

Profitability

This table compares Packaging Corporation of America and CCL Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Packaging Corporation of America	7.25%	18.94%	8.10%
CCL Industries	10.27%	14.75%	7.89%

Summary

Packaging Corporation of America beats CCL Industries on 13 of the 15 factors compared between the two stocks.

About Packaging Corporation of America

Packaging Corporation of America engages in the production of container products. It operates through the following segments: Packaging, Paper, and Corporate and Other. The Packaging segment offers a variety of corrugated packaging products, such as conventional shipping containers. The Paper segment manufactures and sells a range of papers, including communication-based papers, and pressure sensitive papers. The Corporate and Other segment focuses on transportation assets, such as rail cars, and trucks. The company was founded in 1959 and is headquartered in Lake Forest, IL.

About CCL Industries

CCL Industries Inc. manufactures and sells labels, consumer printable media products, technology-driven label solutions, polymer banknote substrates, and specialty films. It operates through CCL, Avery, Checkpoint, and Innovia segments. The CCL segment converts pressure sensitive and extruded film materials for a range of decorative, instructional, security, and functional applications for government institutions and global customers in consumer packaging, healthcare, chemicals, consumer durables, electronic device, and automotive markets. The Avery segment supplies labels, specialty converted media, and software solutions to enable short-run digital printing in businesses and homes alongside complementary products sold through distributors, mass-market stores, and e-commerce retailers. The Checkpoint segment engages in developing radio frequency and radio frequency identification-based technology systems for loss prevention and inventory management applications, including labeling and tagging solutions for the retail and apparel industries. The Innovia segment supplies biaxially oriented polypropylene films to customers in the pressure sensitive label materials, flexible packaging, and consumer packaged goods industries. The company operates in Canada, the United States, Puerto Rico, Mexico, Brazil, Chile, Argentina, Europe, Asia, Australia, Africa, and New Zealand. CCL Industries Inc. was founded in 1951 and is headquartered in Toronto, Canada.