Sonoco Products (NYSE: SON) is one of 15 public companies in the “Non-Paper Containers & Packaging” industry, but how does it compare to its rivals? We will compare Sonoco Products to related businesses based on the strength of its earnings, valuation, risk, profitability, analyst recommendations, institutional ownership and dividends.

Earnings and Valuation

This table compares Sonoco Products and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Sonoco Products $4.78 billion $286.43 million 19.57
Sonoco Products Competitors $4.42 billion $182.22 million 142.96

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

Institutional & Insider Ownership

72.0% of Sonoco Products shares are held by institutional investors. Comparatively, 75.3% of shares of all “Non-Paper Containers & Packaging” companies are held by institutional investors. 1.9% of Sonoco Products shares are held by insiders. Comparatively, 7.1% of shares of all “Non-Paper Containers & Packaging” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Sonoco Products pays an annual dividend of $1.56 per share and has a dividend yield of 2.9%. Sonoco Products pays out 57.4% 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 62.8% of their earnings in the form of a dividend. Sonoco Products has increased its dividend for 37 consecutive years. Sonoco Products is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings and target prices for Sonoco Products and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sonoco Products 0 5 2 0 2.29
Sonoco Products Competitors 88 604 409 6 2.30

Sonoco Products presently has a consensus price target of $53.00, indicating a potential downside of 0.41%. As a group, “Non-Paper Containers & Packaging” companies have a potential upside of 2.34%. Given Sonoco Products’ rivals stronger consensus rating and higher possible upside, analysts clearly believe Sonoco Products has less favorable growth aspects than its rivals.

Profitability

This table compares Sonoco Products and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sonoco Products 5.63% 16.40% 6.38%
Sonoco Products Competitors 2.82% 22.99% 4.08%

Risk & Volatility

Sonoco Products has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Sonoco Products’ rivals have a beta of 1.20, meaning that their average stock price is 20% more volatile than the S&P 500.

Summary

Sonoco Products rivals beat Sonoco Products on 9 of the 15 factors compared.

About Sonoco Products

Sonoco Products Company is engaged in manufacturing of industrial and consumer packaging products, and providing packaging services. The Company operates in four segments: Consumer Packaging, Paper and Industrial Converted Products, Display and Packaging, and Protective Solutions. Its Consumer Packaging segment’s products and services include round composite cans, aluminum, steel and peelable membrane easy-open closures for composite and metal cans; plastic bottles, cups and trays, and printed flexible packaging and global brand management. The Display and Packaging segment’s products and services include point-of-purchase displays; fulfilment; supply chain management, and paperboard specialties. Its Paper and Industrial Converted Products segment provides the raw material for its fiber-based packaging. The Protective Solutions segment’s products and services include custom-engineered and expanded foam protective packaging and components, and temperature-assured packaging.

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