Ardagh Metal Packaging (NYSE:AMBP) and O-I Glass (NYSE:OI) Financial Analysis

Ardagh Metal Packaging (NYSE:AMBP) and O-I Glass (NYSE:OI) are both materials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Profitability

This table compares Ardagh Metal Packaging and O-I Glass’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ardagh Metal Packaging	0.93%	-23.24%	3.02%
O-I Glass	-18.89%	3.74%	0.43%

Dividends

Ardagh Metal Packaging pays an annual dividend of $0.40 per share and has a dividend yield of 8.5%. O-I Glass pays an annual dividend of $0.20 per share and has a dividend yield of 3.9%. Ardagh Metal Packaging pays out 444.4% 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 -2.6% of its earnings in the form of a dividend.

Insider and Institutional Ownership

16.9% of Ardagh Metal Packaging shares are held by institutional investors. Comparatively, 97.2% of O-I Glass shares are held by institutional investors. 0.0% of Ardagh Metal Packaging shares are held by insiders. Comparatively, 1.0% of O-I Glass shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Ardagh Metal Packaging has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, O-I Glass has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Earnings & Valuation

This table compares Ardagh Metal Packaging 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
Ardagh Metal Packaging	$5.50 billion	0.51	$11.00 million	$0.09	52.56
O-I Glass	$6.33 billion	0.12	-$129.00 million	($7.79)	-0.66

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

Analyst Recommendations

This is a summary of recent recommendations for Ardagh Metal Packaging and O-I Glass, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ardagh Metal Packaging	0	5	1	0	2.17
O-I Glass	2	4	3	0	2.11

Ardagh Metal Packaging presently has a consensus price target of $4.88, indicating a potential upside of 3.07%. O-I Glass has a consensus price target of $8.81, indicating a potential upside of 72.62%. Given O-I Glass’ higher probable upside, analysts plainly believe O-I Glass is more favorable than Ardagh Metal Packaging.

About Ardagh Metal Packaging

Ardagh Metal Packaging S.A. (NYSE: AMBP) manufactures and supplies metal beverage cans and ends for beverage companies and brand owners. Its products are used for drinks including beer, soft drinks and energy beverages. The company serves customers in Europe, North America and Brazil through its manufacturing operations. Its metal packaging is designed to be recyclable. Ardagh Metal Packaging became a separately listed company in 2021 following its separation from Ardagh Group, which remains its majority shareholder.

About O-I Glass

O-I Glass, Inc. manufactures glass containers for food and beverage brands. Its products include bottles and jars used for beer, wine, spirits, nonalcoholic beverages, and food, serving customers across consumer and industrial markets. The company traces its roots to the Owens Bottle Company, established in 1903 by glassmaking innovator Michael J. Owens. It later became Owens-Illinois and adopted the O-I Glass name in 2020. O-I Glass serves customers in the Americas and Europe, with operations and sales activities across multiple countries.