Sonoco Products (NYSE: SON) and TriMas (NASDAQ:TRS) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.
This table compares Sonoco Products and TriMas’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations for Sonoco Products and TriMas, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sonoco Products presently has a consensus target price of $52.00, suggesting a potential downside of 4.92%. TriMas has a consensus target price of $25.25, suggesting a potential downside of 2.88%. Given TriMas’ stronger consensus rating and higher possible upside, analysts plainly believe TriMas is more favorable than Sonoco Products.
Valuation and Earnings
This table compares Sonoco Products and TriMas’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sonoco Products||$4.78 billion||1.14||$286.43 million||$2.72||20.11|
|TriMas||$794.02 million||1.50||-$39.80 million||($0.72)||-36.11|
Sonoco Products has higher revenue and earnings than TriMas. TriMas is trading at a lower price-to-earnings ratio than Sonoco Products, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Sonoco Products has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, TriMas has a beta of 2.05, suggesting that its share price is 105% more volatile than the S&P 500.
Sonoco Products pays an annual dividend of $1.56 per share and has a dividend yield of 2.9%. TriMas does not pay a dividend. Sonoco Products pays out 57.4% of its earnings in the form of a dividend. Sonoco Products has raised its dividend for 36 consecutive years.
Insider and Institutional Ownership
72.3% of Sonoco Products shares are held by institutional investors. Comparatively, 97.7% of TriMas shares are held by institutional investors. 1.9% of Sonoco Products shares are held by company insiders. Comparatively, 1.4% of TriMas shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Sonoco Products beats TriMas on 11 of the 17 factors compared between the two stocks.
Sonoco Products Company Profile
Sonoco Products Company is engaged in manufacturing of industrial and consumer packaging products, and providing packaging services. The Company operates in four segments: Consumer Packaging, Paper and Industrial Converted Products, Display and Packaging, and Protective Solutions. Its Consumer Packaging segment’s products and services include round composite cans, aluminum, steel and peelable membrane easy-open closures for composite and metal cans; plastic bottles, cups and trays, and printed flexible packaging and global brand management. The Display and Packaging segment’s products and services include point-of-purchase displays; fulfilment; supply chain management, and paperboard specialties. Its Paper and Industrial Converted Products segment provides the raw material for its fiber-based packaging. The Protective Solutions segment’s products and services include custom-engineered and expanded foam protective packaging and components, and temperature-assured packaging.
TriMas Company Profile
TriMas Corporation is a designer, manufacturer and distributor of engineered products for commercial, industrial and consumer markets. The Company operates through four segments: Packaging, Aerospace, Energy and Engineered Components. The Packaging segment is a designer, manufacturer and distributor of engineered closure and dispensing systems for a range of end markets, including steel and plastic industrial, and consumer packaging applications. The Aerospace segment is a designer and manufacturer of a range of products for use in the aerospace industry. The Energy segment is a manufacturer and distributor of metallic and non-metallic gaskets, bolts, industrial fasteners and specialty products for the petroleum refining, petrochemical, oil field and industrial markets. The Engineered Components segment is a designer, manufacturer and distributor of high-pressure and acetylene cylinders for the transportation, storage and dispensing of compressed gases.
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