Critical Analysis: Sealed Air (SEE) and Its Competitors

Sealed Air (NYSE: SEE) is one of 15 publicly-traded companies in the “Non-Paper Containers & Packaging” industry, but how does it contrast to its competitors? We will compare Sealed Air to similar companies based on the strength of its institutional ownership, profitability, risk, valuation, earnings, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Sealed Air and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sealed Air 0 6 6 0 2.50
Sealed Air Competitors 87 601 408 6 2.30

Sealed Air currently has a consensus price target of $49.20, indicating a potential downside of 0.45%. As a group, “Non-Paper Containers & Packaging” companies have a potential upside of 1.77%. Given Sealed Air’s competitors higher possible upside, analysts clearly believe Sealed Air has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

92.9% of Sealed Air shares are owned by institutional investors. Comparatively, 75.3% of shares of all “Non-Paper Containers & Packaging” companies are owned by institutional investors. 1.1% of Sealed Air shares are owned by insiders. Comparatively, 7.1% of shares of all “Non-Paper Containers & Packaging” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Sealed Air and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Sealed Air $6.78 billion $486.40 million 47.52
Sealed Air Competitors $4.42 billion $182.22 million 144.33

Sealed Air has higher revenue and earnings than its competitors. Sealed Air is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Sealed Air has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Sealed Air’s competitors have a beta of 1.20, indicating that their average stock price is 20% more volatile than the S&P 500.

Dividends

Sealed Air pays an annual dividend of $0.64 per share and has a dividend yield of 1.3%. Sealed Air pays out 61.5% of its earnings in the form of a dividend. As a group, “Non-Paper Containers & Packaging” companies pay a dividend yield of 2.2% and pay out 60.2% of their earnings in the form of a dividend. Sealed Air lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Sealed Air and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sealed Air 20.15% 67.60% 5.49%
Sealed Air Competitors 2.97% 24.29% 4.21%

Summary

Sealed Air beats its competitors on 9 of the 15 factors compared.

Sealed Air Company Profile

Sealed Air Corporation is engaged in food safety and security, facility hygiene and product protection business. The Company’s segments are Food Care (includes Corporate, Medical Applications and New Ventures businesses), Product Care and Corporate. The Food Care segment focuses on providing a range of integrated system solutions. The Food Care business serves primarily perishable food and beverage processors, predominately in fresh red meat, smoked and processed meats, beverages, poultry and dairy (solids and liquids) markets throughout the world. The Product Care segment provides customers with a range of Product Care solutions to meet cushioning, void fill, surface protection, retail display, containment and dunnage needs.

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