TriMas (TRS) & Ardagh Group (ARD) Financial Analysis

TriMas (NASDAQ: TRS) and Ardagh Group (NYSE:ARD) are both industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Dividends

Ardagh Group pays an annual dividend of $0.56 per share and has a dividend yield of 2.7%. TriMas does not pay a dividend. Ardagh Group pays out 560.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares TriMas and Ardagh Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TriMas $794.02 million 1.55 -$39.80 million ($0.72) -37.29
Ardagh Group $6.67 billion 0.06 -$57.85 million $0.10 205.60

TriMas has higher earnings, but lower revenue than Ardagh Group. TriMas is trading at a lower price-to-earnings ratio than Ardagh Group, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

97.7% of TriMas shares are owned by institutional investors. Comparatively, 87.4% of Ardagh Group shares are owned by institutional investors. 1.4% of TriMas shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for TriMas and Ardagh Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TriMas 0 3 1 0 2.25
Ardagh Group 0 3 6 0 2.67

TriMas currently has a consensus target price of $25.25, suggesting a potential downside of 5.96%. Ardagh Group has a consensus target price of $24.39, suggesting a potential upside of 18.62%. Given Ardagh Group’s stronger consensus rating and higher possible upside, analysts plainly believe Ardagh Group is more favorable than TriMas.

Profitability

This table compares TriMas and Ardagh Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TriMas -4.01% 12.18% 6.03%
Ardagh Group N/A N/A N/A

Summary

Ardagh Group beats TriMas on 8 of the 15 factors compared between the two stocks.

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.

Ardagh Group Company Profile

Ardagh Group SA, formerly Ardagh Finance Holdings SA, is a Luxembourg-based company engaged in the packing industry. The Company focuses on the design and manufacture of rigid packaging solutions mainly for food and beverage markets. Its activities are divided into two business segments: Metal packing, which supplies aluminum and steel beverage cans, two-piece aluminum, two-piece tinplate and three-piece tinplate food and specialty cans, as well as a range of can ends, among others, and Glass packing, which delivers glass containers, bottles and jars, among others. Its products are distributed in customized sizes and shapes, as well as are decorated with printed graphics. The Company operates in Europe, the Americas, Asia and Africa.

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