Head-To-Head Contrast: Ardagh Metal Packaging (NYSE:AMBP) & International Paper (NYSE:IP)

Ardagh Metal Packaging (NYSE:AMBP) and International Paper (NYSE:IP) are both materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Risk and Volatility

Ardagh Metal Packaging has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, International Paper has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Dividends

Ardagh Metal Packaging pays an annual dividend of $0.40 per share and has a dividend yield of 8.7%. International Paper pays an annual dividend of $1.85 per share and has a dividend yield of 5.5%. 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. International Paper pays out -28.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and price targets for Ardagh Metal Packaging and International Paper, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ardagh Metal Packaging	0	5	1	0	2.17
International Paper	1	3	10	0	2.64

Ardagh Metal Packaging currently has a consensus target price of $4.88, indicating a potential upside of 5.79%. International Paper has a consensus target price of $45.44, indicating a potential upside of 33.94%. Given International Paper’s stronger consensus rating and higher possible upside, analysts clearly believe International Paper is more favorable than Ardagh Metal Packaging.

Institutional and Insider Ownership

16.9% of Ardagh Metal Packaging shares are owned by institutional investors. Comparatively, 82.0% of International Paper shares are owned by institutional investors. 0.0% of Ardagh Metal Packaging shares are owned by company insiders. Comparatively, 0.2% of International Paper shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Ardagh Metal Packaging and International Paper’s 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%
International Paper	-14.32%	1.77%	0.69%

Earnings and Valuation

This table compares Ardagh Metal Packaging and International Paper”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ardagh Metal Packaging	$5.50 billion	0.50	$11.00 million	$0.09	51.20
International Paper	$23.63 billion	0.76	-$3.52 billion	($6.56)	-5.17

Ardagh Metal Packaging has higher earnings, but lower revenue than International Paper. International Paper 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.

Summary

International Paper beats Ardagh Metal Packaging on 11 of the 16 factors compared between the two stocks.

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 International Paper

International Paper is a global producer of fiber-based packaging and pulp products. Its packaging offerings include containerboard and corrugated packaging used to protect and transport goods, while its pulp products serve a range of consumer and industrial applications. The company traces its origins to 1898, when several U.S. paper manufacturers combined to form International Paper. Over time, it has evolved through acquisitions and changes to its business, with a focus on renewable, fiber-based materials and packaging solutions.