Head to Head Review: International Paper (NYSE:IP) and Ardagh Metal Packaging (NYSE:AMBP)

Ardagh Metal Packaging (NYSE:AMBP) and International Paper (NYSE:IP) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Valuation & Earnings

This table compares Ardagh Metal Packaging and International Paper”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ardagh Metal Packaging	$5.50 billion	0.47	$11.00 million	$0.06	72.42
International Paper	$24.20 billion	0.70	-$3.52 billion	($6.52)	-4.88

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

Institutional & Insider Ownership

16.9% of Ardagh Metal Packaging shares are owned by institutional investors. Comparatively, 81.9% of International Paper shares are owned by institutional investors. 0.0% of Ardagh Metal Packaging shares are owned by insiders. Comparatively, 0.2% of International Paper 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 and recommmendations for Ardagh Metal Packaging and International Paper, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ardagh Metal Packaging	0	6	1	0	2.14
International Paper	1	3	10	0	2.64

Ardagh Metal Packaging currently has a consensus target price of $4.83, indicating a potential upside of 11.24%. International Paper has a consensus target price of $47.52, indicating a potential upside of 49.23%. Given International Paper’s stronger consensus rating and higher probable upside, analysts clearly believe International Paper is more favorable than Ardagh Metal Packaging.

Dividends

Ardagh Metal Packaging pays an annual dividend of $0.40 per share and has a dividend yield of 9.2%. International Paper pays an annual dividend of $1.85 per share and has a dividend yield of 5.8%. Ardagh Metal Packaging pays out 666.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. International Paper pays out -28.4% of its earnings in the form of a dividend.

Profitability

This table compares Ardagh Metal Packaging and International Paper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ardagh Metal Packaging	0.68%	-27.93%	3.09%
International Paper	-14.20%	-1.09%	-0.44%

Risk & Volatility

Ardagh Metal Packaging has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, International Paper has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Summary

International Paper beats Ardagh Metal Packaging on 10 of the 16 factors compared between the two stocks.

About Ardagh Metal Packaging

Ardagh Metal Packaging S.A., together with its subsidiaries, supplies consumer metal beverage cans in Europe, the United States, and Brazil. Its products are used in various end-use categories, including beer, carbonated soft drinks, energy drinks, hard seltzers, juices, pre-mixed cocktails, teas, sparkling waters, and wine. The company serves beverage producers. Ardagh Metal Packaging S.A. is based in Luxembourg, Luxembourg. Ardagh Metal Packaging S.A. is a subsidiary of Ardagh Group S.A.

About International Paper

International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others. It sells its products directly to end users and converters, as well as through agents, resellers, and distributors. The company was founded in 1898 and is headquartered in Memphis, Tennessee.