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

Insider & Institutional 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 company insiders. Comparatively, 7.1% of shares of all “Non-Paper Containers & Packaging” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Sonoco Products and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sonoco Products 0 5 2 0 2.29
Sonoco Products Competitors 93 604 410 6 2.30

Sonoco Products presently has a consensus target price of $53.00, suggesting a potential downside of 2.20%. As a group, “Non-Paper Containers & Packaging” companies have a potential upside of 1.60%. Given Sonoco Products’ competitors stronger consensus rating and higher probable upside, analysts plainly believe Sonoco Products has less favorable growth aspects than its competitors.

Profitability

This table compares Sonoco Products and its competitors’ 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 and Volatility

Sonoco Products has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Sonoco Products’ competitors have a beta of 1.21, suggesting that their average share price is 21% more volatile than the S&P 500.

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 49.0% of their earnings in the form of a dividend. Sonoco Products has increased its dividend for 37 consecutive years.

Valuation and Earnings

This table compares Sonoco Products and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Sonoco Products $4.78 billion $286.43 million 19.92
Sonoco Products Competitors $4.42 billion $182.22 million 136.93

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

Summary

Sonoco Products competitors beat Sonoco Products on 10 of the 15 factors compared.

Sonoco Products Company Profile

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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