Ball (NYSE: BALL – Get Rating) and Silgan (NASDAQ: SLGN – Get Rating) are both industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.
Risk and Volatility:
Ball has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Silgan has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.
Insider and Institutional Ownership:
82.6% of Ball shares are owned by institutional investors. Comparatively, 67.8% of Silgan shares are owned by institutional investors. 1.4% of Ball shares are owned by company insiders. Comparatively, 24.4% of Silgan shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability:
This table compares Ball and Silgan’s net margins, return on equity and return on assets.
| Net Margins: | Return on Equity: | Return on Assets: | |
| Ball: | 7.80% | 30.95% | 5.85% |
| Silgan: | 6.30% | 25.33% | 5.15% |
Dividends:
Ball pays an annual dividend of $ 0.80 per share and has a dividend yield of 1.1%. Silgan pays an annual dividend of $ 0.64 per share and has a dividend yield of 1.4%. Ball pays out 23.4% of its earnings in the form of a dividend. Silgan pays out 19.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Silgan has increased its dividend for 19 consecutive years. Silgan is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings:
This is a breakdown of recent ratings for Ball and Silgan, as reported by MarketBeat.
| Sell Ratings: | Hold Ratings: | Buy Ratings: | Strong Buy Ratings: | Rating Score: | |
| Ball: | 0: | 1: | 1: | 0: | 2.50: |
| Silgan: | 1: | 3: | 5: | 0: | 2.44: |
Ball presently has a consensus target price of $ 87.00, indicating a potential upside of 19.70%. Silgan has a consensus target price of $ 49.89, indicating a potential upside of 10.69%. Given Ball’s stronger consensus rating and higher probable upside, research analysts clearly believe Ball is more favorable than Silgan.
Earnings & Valuation:
This table compares Ball and Silgan’s gross revenue, earnings per share and valuation.
| Gross Revenue: | Price / Sales Ratio: | Net Income: | Earnings Per Share: | Price / Earnings Ratio: | |
| Ball: | $ 13.81 billion: | 1.68: | $ 878.00 million: | $ 3.42: | 21.25: |
| Silgan: | $ 5.68 billion: | 0.88: | $ 359.08 million: | $ 3.33: | 13.53: |
Ball has higher revenue and earnings than Silgan. Silgan is trading at a lower price-to-earnings ratio than Ball, indicating that it is currently the most affordable of the two stocks.
Summary:
Ball beats Silgan on 11 of the 17 factors compared between the two stocks.
About Ball: (Get Rating)
Ball Corporation supplies aluminum packaging products for the beverage, personal care, and household products industries in the United States, Brazil, and internationally. It operates through four segments: Beverage Packaging, North and Central America; Beverage Packaging, Europe, Middle East and Africa; Beverage Packaging, South America; and Aerospace. The company manufactures and sells aluminum beverage containers to fillers of carbonated soft drinks, beer, energy drinks, and other beverages. It also develops spacecraft, sensors and instruments, radio frequency systems, and other technologies for the civil, commercial, and national security aerospace markets, as well as offers defense hardware, antenna and video tactical solutions, civil and operational space hardware, and systems engineering services. In addition, the company designs, manufactures, and tests satellites, remote sensors, and ground station control hardware and software; and provides launch vehicle integration and satellite operational services. Further, it offers target identification, warning, and attitude control systems and components; cryogenic systems and associated sensor cooling devices; star trackers; and fast-steering mirrors to the government agencies or their prime contractors. Additionally, the company manufactures and sells extruded aluminum aerosol containers, recloseable aluminum bottles, aluminum cups, and aluminum slugs. Ball Corporation was founded in 1880 and is headquartered in Westminster, Colorado.
About Silgan: (Get Rating)
Silgan Holdings Inc., together with its subsidiaries, manufactures and sells rigid packaging for consumer goods products in North America, Europe, and internationally. It operates through three segments: Dispensing and Specialty Closures, Metal Containers, and Custom Containers. The Metal Containers segment manufactures and sells steel and aluminum containers for food products, such as pet food, vegetables, soups, proteins, tomato based products, adult nutritional drinks, fruits, and other miscellaneous food products, as well as general line metal containers primarily for chemicals. The Dispensing and Specialty Closures segment offers a range of metal and plastic closures, and dispensing systems for use in food, beverage, health care, garden, home, personal care, and beauty products, as well as capping / sealing equipment and detection systems. The Custom Containers segment manufactures and sells custom designed and stock plastic containers for use in personal care and health care; food and beverage; household and industrial chemical; pharmaceutical; pet food and care; agricultural; automotive; and marine chemical products. This segment also provides plastic thermoformed barrier and non-barrier bowls, and trays for food products, such as soups, other ready-to-eat meals, and pet food products; and plastic closures, caps, sifters, and fitments, as well as thermoformed tubs for food, household, and personal care products, including soft fabric wipes. The company markets its products primarily through direct sales force, as well as through a network of distributors and an online shopping catalog. Silgan Holdings Inc. was founded in 1987 and is headquartered in Stamford, Connecticut.
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