Critical Survey: Crown Holdings (CCK) & Greif Bros. Corporation (NYSE:GEF)

Crown Holdings (NYSE: CCK) and Greif Bros. Corporation (NYSE:GEF) are both mid-cap industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.

Volatility and Risk

Crown Holdings has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Greif Bros. Corporation has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Crown Holdings and Greif Bros. Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Crown Holdings 0 4 5 0 2.56
Greif Bros. Corporation 1 2 4 0 2.43

Crown Holdings presently has a consensus target price of $64.25, suggesting a potential upside of 11.37%. Greif Bros. Corporation has a consensus target price of $55.80, suggesting a potential downside of 0.45%. Given Crown Holdings’ stronger consensus rating and higher probable upside, equities analysts clearly believe Crown Holdings is more favorable than Greif Bros. Corporation.

Dividends

Greif Bros. Corporation pays an annual dividend of $1.68 per share and has a dividend yield of 3.0%. Crown Holdings does not pay a dividend. Greif Bros. Corporation pays out 103.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Crown Holdings and Greif Bros. Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Crown Holdings 5.81% 66.28% 5.41%
Greif Bros. Corporation 2.81% 16.17% 4.95%

Insider & Institutional Ownership

93.0% of Crown Holdings shares are owned by institutional investors. Comparatively, 48.8% of Greif Bros. Corporation shares are owned by institutional investors. 1.8% of Crown Holdings shares are owned by insiders. Comparatively, 16.8% of Greif Bros. Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Crown Holdings and Greif Bros. Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Crown Holdings $8.31 billion 0.94 $1.32 billion $3.49 16.53
Greif Bros. Corporation $3.42 billion 0.42 $447.50 million $1.63 34.39

Crown Holdings has higher revenue and earnings than Greif Bros. Corporation. Crown Holdings is trading at a lower price-to-earnings ratio than Greif Bros. Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Crown Holdings beats Greif Bros. Corporation on 13 of the 16 factors compared between the two stocks.

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.

About Greif Bros. Corporation

Greif, Inc. is a producer of industrial packaging products and services. The Company’s segments are Rigid Industrial Packaging & Services; Paper Packaging & Services; Flexible Products & Services, and Land Management. The Rigid Industrial Packaging & Services segment is engaged in the production and sale of rigid industrial packaging products, and services, such as container life cycle management, filling, logistics, warehousing and other packaging services. The Paper Packaging & Services segment is engaged in the production and sale of containerboard, corrugated sheets, corrugated containers and other corrugated products. The Flexible Products & Services segment is engaged in the production and sale of flexible intermediate bulk containers and related services on a global basis. The Land Management segment is involved in the management and sale of timber. As of October 31, 2016, the Company had operations in over 45 countries.

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