Reviewing Greif Bros. Corporation (GEF) & Crown Holdings (NYSE:CCK)
Greif Bros. Corporation (NYSE: GEF) and Crown Holdings (NYSE:CCK) are both mid-cap industrial products companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitabiliy and earnings.
Greif Bros. Corporation pays an annual dividend of $1.68 per share and has a dividend yield of 3.0%. Crown Holdings does not pay 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.
This is a summary of current recommendations for Greif Bros. Corporation and Crown Holdings, 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|
Greif Bros. Corporation presently has a consensus target price of $55.80, suggesting a potential downside of 0.46%. Crown Holdings has a consensus target price of $64.25, suggesting a potential upside of 9.64%. Given Crown Holdings’ stronger consensus rating and higher probable upside, analysts clearly believe Crown Holdings is more favorable than Greif Bros. Corporation.
This table compares Greif Bros. Corporation and Crown Holdings’ 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%|
Insider & Institutional Ownership
48.9% of Greif Bros. Corporation shares are owned by institutional investors. Comparatively, 92.5% of Crown Holdings shares are owned by institutional investors. 16.8% of Greif Bros. Corporation shares are owned by company insiders. Comparatively, 1.8% of Crown Holdings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Greif Bros. Corporation and Crown Holdings’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Greif Bros. Corporation||$3.42 billion||0.42||$447.50 million||$1.63||34.39|
|Crown Holdings||$8.31 billion||0.95||$1.32 billion||$3.49||16.79|
Crown Holdings has higher revenue and earnings than Greif Bros. Corporation. Crown Holdings 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.
Volatility & Risk
Greif Bros. Corporation has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Crown Holdings has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.
Crown Holdings beats Greif Bros. Corporation on 13 of the 16 factors compared between the two stocks.
Greif Bros. Corporation Company Profile
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.
Crown Holdings Company Profile
Crown Holdings, Inc. is engaged in the design, manufacture and sale of packaging products for consumer goods. The Company’s business is organized within three divisions: Americas, Europe and Asia Pacific. Within each division, the Company is organized along product lines. The Company’s segments within the Americas Division are Americas Beverage and North America Food. The Company’s segments within the European Division are European Beverage and European Food. The Company’s Asia Pacific Division segment consists of its beverage and non-beverage can operations. The Company is also engaged in European aerosol and specialty packaging business, its North American aerosol can business, and its tooling and equipment operations in the Unites States and the United Kingdom. As of December 31, 2016, the Company operated 146 plants along with sales and service facilities throughout 36 countries. It also has three canmaking and spare part operations in the United States and the United Kingdom.
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