Silgan Holdings (NASDAQ: SLGN) and Multi Packaging Solutions Intrntnl (NYSE:MPSX) are both industrial products companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.
This table compares Silgan Holdings and Multi Packaging Solutions Intrntnl’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Multi Packaging Solutions Intrntnl||2.69%||10.01%||2.48%|
Silgan Holdings pays an annual dividend of $0.36 per share and has a dividend yield of 1.2%. Multi Packaging Solutions Intrntnl does not pay a dividend. Silgan Holdings pays out 29.0% of its earnings in the form of a dividend. Silgan Holdings has increased its dividend for 13 consecutive years.
Earnings and Valuation
This table compares Silgan Holdings and Multi Packaging Solutions Intrntnl’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Silgan Holdings||$3.77 billion||0.89||$478.25 million||$1.24||24.59|
|Multi Packaging Solutions Intrntnl||N/A||N/A||N/A||$0.12||150.01|
Silgan Holdings has higher revenue and earnings than Multi Packaging Solutions Intrntnl. Silgan Holdings is trading at a lower price-to-earnings ratio than Multi Packaging Solutions Intrntnl, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Silgan Holdings has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, Multi Packaging Solutions Intrntnl has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500.
Institutional and Insider Ownership
36.0% of Silgan Holdings shares are owned by institutional investors. Comparatively, 99.2% of Multi Packaging Solutions Intrntnl shares are owned by institutional investors. 33.1% of Silgan Holdings shares are owned by company insiders. Comparatively, 0.9% of Multi Packaging Solutions Intrntnl shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of current recommendations for Silgan Holdings and Multi Packaging Solutions Intrntnl, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Multi Packaging Solutions Intrntnl||0||4||1||0||2.20|
Silgan Holdings currently has a consensus price target of $31.36, suggesting a potential upside of 2.84%. Multi Packaging Solutions Intrntnl has a consensus price target of $17.00, suggesting a potential downside of 5.56%. Given Silgan Holdings’ higher probable upside, analysts plainly believe Silgan Holdings is more favorable than Multi Packaging Solutions Intrntnl.
Silgan Holdings beats Multi Packaging Solutions Intrntnl on 9 of the 13 factors compared between the two stocks.
About Silgan Holdings
Silgan Holdings Inc. is a holding company. The Company is a manufacturer of rigid packaging for consumer goods products. The Company operates in three business segments: metal containers, closures and plastic containers. Its metal container segment is engaged in the manufacture and sale of steel and aluminum containers for human and pet food and general line products. Its closures segment manufactures and sells metal, composite and plastic closures for food and beverage products. Its plastic containers segment manufactures and sells custom designed plastic containers and closures for personal care, food, healthcare, pharmaceutical, household and industrial chemical, pet care, agricultural, automotive and marine chemical products. The Company is a manufacturer of metal containers in North America and Europe. As of December 31, 2016, the Company’s products were used for a range of end markets and it operated 87 manufacturing plants in North America, Europe, Asia and South America.
About Multi Packaging Solutions Intrntnl
Multi Packaging Solutions International Limited is a provider of specialty packaging solutions for the consumer, healthcare and multi-media markets. The Company operates through three segments: North America, Europe and Asia. The Company’s print-based specialty packaging solutions include premium folding cartons, inserts, labels and rigid packaging across a range of substrates and finishes, which are complemented by value-added services, including design, new product development and supply chain solutions. In addition, the Company provides supply chain services, such as vendor managed inventory (VMI), specific carton-by-carton scan ability and data, which enable the customer to track a product from manufacturer to end user. The Company’s packaging solutions utilize a range of substrates, including paper and paperboard, pressure sensitive labels, plastic and foil, and finishes, including ultra violet (UV) coatings, film lamination, stamping and embossing.
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