Bemis (BMS) and Greif Bros. Corporation (GEF) Head-To-Head Review
Bemis (NYSE: BMS) and Greif Bros. Corporation (NYSE:GEF) are both mid-cap industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.
Volatility and Risk
Bemis has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Greif Bros. Corporation has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500.
Earnings and Valuation
This table compares Bemis and Greif Bros. Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Bemis||$4.02 billion||0.93||$562.80 million||$2.21||18.53|
|Greif Bros. Corporation||$3.42 billion||0.79||$447.50 million||$1.63||34.72|
Bemis has higher revenue and earnings than Greif Bros. Corporation. Bemis is trading at a lower price-to-earnings ratio than Greif Bros. Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Bemis and Greif Bros. Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Greif Bros. Corporation||2.81%||16.17%||4.95%|
This is a summary of current recommendations and price targets for Bemis and Greif Bros. Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Greif Bros. Corporation||1||2||4||0||2.43|
Bemis presently has a consensus price target of $48.75, indicating a potential upside of 19.02%. Greif Bros. Corporation has a consensus price target of $55.80, indicating a potential downside of 1.40%. Given Bemis’ higher probable upside, research analysts plainly believe Bemis is more favorable than Greif Bros. Corporation.
Bemis pays an annual dividend of $1.20 per share and has a dividend yield of 2.9%. Greif Bros. Corporation pays an annual dividend of $1.68 per share and has a dividend yield of 3.0%. Bemis pays out 54.3% of its earnings in the form of a dividend. Greif Bros. Corporation pays out 103.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Greif Bros. Corporation has raised its dividend for 33 consecutive years. Greif Bros. Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
75.7% of Bemis shares are owned by institutional investors. Comparatively, 47.8% of Greif Bros. Corporation shares are owned by institutional investors. 1.1% of Bemis shares are owned by insiders. Comparatively, 16.4% of Greif Bros. Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Bemis beats Greif Bros. Corporation on 10 of the 17 factors compared between the two stocks.
Bemis Company, Inc. is a manufacturer of packaging products. The Company operates through two segments: U.S. Packaging and Global Packaging. The U.S. Packaging segment represents all food, consumer, and industrial products packaging-related manufacturing operations located in the United States. The Global Packaging segment includes all packaging-related manufacturing operations located outside of the United States, as well as global medical device and pharmaceutical packaging-related manufacturing operations. This segment manufactures multilayer polymer, blown and cast film structures to produce packaging sold for a range of food, medical, pharmaceutical, personal care, electronics, and industrial applications. Its products are sold to customers in the food industry. The Company’s other customers include companies in various types of businesses, including chemical, agribusiness, medical, pharmaceutical, personal care, electronics, construction, and other consumer goods.
About Greif Bros. Corporation
Greif, Inc. is a producer of industrial packaging products and services. The Company’s segments are Rigid Industrial Packaging & Services; Paper Packaging & Services; Flexible Products & Services, and Land Management. The Rigid Industrial Packaging & Services segment is engaged in the production and sale of rigid industrial packaging products, and services, such as container life cycle management, filling, logistics, warehousing and other packaging services. The Paper Packaging & Services segment is engaged in the production and sale of containerboard, corrugated sheets, corrugated containers and other corrugated products. The Flexible Products & Services segment is engaged in the production and sale of flexible intermediate bulk containers and related services on a global basis. The Land Management segment is involved in the management and sale of timber. As of October 31, 2016, the Company had operations in over 45 countries.
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