Financial Comparison: Tredegar (TG) & Its Rivals

Tredegar (NYSE:TG) is one of 1,988 public companies in the “Metals & Mining” industry, but how does it weigh in compared to its peers? We will compare Tredegar to similar businesses based on the strength of its valuation, dividends, risk, analyst recommendations, earnings, profitability and institutional ownership.

Profitability

This table compares Tredegar and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tredegar	4.26%	14.52%	8.07%
Tredegar Competitors	-1,161,736,352,322,426,600.00%	-14.42%	-2.03%

Insider & Institutional Ownership

79.2% of Tredegar shares are held by institutional investors. Comparatively, 15.8% of shares of all “Metals & Mining” companies are held by institutional investors. 2.5% of Tredegar shares are held by company insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Tredegar pays an annual dividend of $0.52 per share and has a dividend yield of 6.7%. Tredegar pays out 54.2% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 8.8% and pay out 10.6% of their earnings in the form of a dividend. Tredegar lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares Tredegar and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tredegar	$781.74 million	$33.48 million	8.05
Tredegar Competitors	$4.72 billion	$272.63 million	-24.78

Tredegar’s peers have higher revenue and earnings than Tredegar. Tredegar is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Tredegar and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tredegar	0	1	0	0	2.00
Tredegar Competitors	6314	22381	32004	1762	2.47

As a group, “Metals & Mining” companies have a potential upside of 20.47%. Given Tredegar’s peers stronger consensus rating and higher possible upside, analysts clearly believe Tredegar has less favorable growth aspects than its peers.

Volatility & Risk

Tredegar has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Tredegar’s peers have a beta of 0.98, indicating that their average share price is 2% less volatile than the S&P 500.

Summary

Tredegar peers beat Tredegar on 10 of the 15 factors compared.

About Tredegar

Tredegar Corporation manufactures and sells aluminum extrusions, polyethylene (PE) films, and plastic and polyester films in the United States and internationally. It operates through three segments: Aluminum Extrusions, PE Films, and Flexible Packaging Films. The Aluminum Extrusions segment produces soft and medium strength alloyed aluminum extrusions, custom fabricated and finished aluminum extrusions for the building and construction, automotive and transportation, consumer durables, machinery and equipment, electrical and renewable energy, and distribution markets; and manufactures mill, anodized, and painted and alloyed aluminum extrusions to fabricators and distributors. The PE Films segment offers single- and multi-layer surface protection films for protecting components of flat panel and flexible displays that are used in televisions, monitors, notebooks, smart phones, tablets, e-readers, and digital signage under the UltraMask, ForceField, ForceField PEARL, Pearl A, and Obsidian brands. This segment provides polyethylene overwrap for bathroom tissue and paper towels, as well as polyethylene overwrap films and films for other markets. The Flexible Packaging Films segment offers polyester-based films for food packaging and industrial applications under the Ecophane and Sealphane brands. Tredegar Corporation was incorporated in 1988 and is headquartered in Richmond, Virginia.