Ball Corporation (NYSE: BLL) and Crown Holdings (NYSE:CCK) are both mid-cap industrial products companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.
Insider & Institutional Ownership
53.0% of Ball Corporation shares are owned by institutional investors. Comparatively, 93.0% of Crown Holdings shares are owned by institutional investors. 2.7% of Ball Corporation shares are owned by insiders. Comparatively, 1.8% of Crown Holdings shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Ball Corporation and Crown Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Ball Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 1.0%. Crown Holdings does not pay a dividend. Ball Corporation pays out 78.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of recent recommendations and price targets for Ball Corporation and Crown Holdings, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ball Corporation currently has a consensus target price of $43.61, indicating a potential upside of 8.16%. Crown Holdings has a consensus target price of $64.25, indicating a potential upside of 10.11%. Given Crown Holdings’ stronger consensus rating and higher probable upside, analysts clearly believe Crown Holdings is more favorable than Ball Corporation.
Volatility and Risk
Ball Corporation has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Crown Holdings has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.
Earnings & Valuation
This table compares Ball Corporation and Crown Holdings’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ball Corporation||$10.60 billion||1.34||$1.59 billion||$0.51||79.06|
|Crown Holdings||$8.31 billion||0.95||$1.32 billion||$3.49||16.72|
Ball Corporation has higher revenue and earnings than Crown Holdings. Crown Holdings is trading at a lower price-to-earnings ratio than Ball Corporation, indicating that it is currently the more affordable of the two stocks.
Crown Holdings beats Ball Corporation on 10 of the 16 factors compared between the two stocks.
About Ball Corporation
Ball Corporation is a supplier of metal packaging to the beverage, food, personal care and household products industries. The Company’s packaging products are produced for a range of end uses and are manufactured in facilities around the world. Its segments include beverage packaging, North and Central America; beverage packaging, South America; beverage packaging, Europe; food and aerosol packaging; aerospace, and other. Its major product line is aluminum and steel beverage containers. It produces steel food, aerosol and extruded aluminum aerosol containers and aluminum slugs. Its aerospace business designs, develops and manufactures aerospace systems for civil, commercial and national cyber security aerospace markets. It produces spacecraft, instruments and sensors, radio frequency systems and components, data exploitation solutions and a range of aerospace technologies and products.
About Crown Holdings
Crown Holdings, Inc. is engaged in the design, manufacture and sale of packaging products for consumer goods. The Company’s business is organized within three divisions: Americas, Europe and Asia Pacific. Within each division, the Company is organized along product lines. The Company’s segments within the Americas Division are Americas Beverage and North America Food. The Company’s segments within the European Division are European Beverage and European Food. The Company’s Asia Pacific Division segment consists of its beverage and non-beverage can operations. The Company is also engaged in European aerosol and specialty packaging business, its North American aerosol can business, and its tooling and equipment operations in the Unites States and the United Kingdom. As of December 31, 2016, the Company operated 146 plants along with sales and service facilities throughout 36 countries. It also has three canmaking and spare part operations in the United States and the United Kingdom.
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