Sonoco Products (NYSE:SON) & Orora (OTCMKTS:ORRYY) Financial Analysis

Orora (OTCMKTS:ORRYY) and Sonoco Products (NYSE:SON) are both consumer cyclical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Orora	N/A	N/A	N/A
Sonoco Products	5.57%	20.10%	6.73%

Earnings & Valuation

This table compares Orora and Sonoco Products”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orora	N/A	N/A	N/A	N/A	N/A
Sonoco Products	$6.61 billion	0.78	$474.96 million	$3.72	14.12

Sonoco Products has higher revenue and earnings than Orora.

Insider & Institutional Ownership

77.7% of Sonoco Products shares are held by institutional investors. 0.5% of Sonoco Products shares are held by 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Orora and Sonoco Products, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orora	0	0	0	0	N/A
Sonoco Products	1	0	2	0	2.33

Sonoco Products has a consensus target price of $59.00, indicating a potential upside of 12.30%. Given Sonoco Products’ higher probable upside, analysts clearly believe Sonoco Products is more favorable than Orora.

Summary

Sonoco Products beats Orora on 8 of the 8 factors compared between the two stocks.

About Orora

Orora Limited designs, manufactures, and supplies packaging products and services to the grocery, fast moving consumer goods, and industrial markets in Australia, New Zealand, the United States, and internationally. The company operates through Orora Australasia and Orora North America segments. It also provides glass bottles, aluminum cans, tabs, and ends, closures and caps, boxes and cartons, point-of-purchase displays, packaging equipment, rigid and flexible packaging, and general packaging materials and supplies. In addition, the company purchases, warehouses, sells, and delivers a range of packaging and related materials; sells equipment; manufactures corrugated sheets and boxes; and provides point of purchase retail display solutions and other visual communication services. Further, the company offers printing and signage, research and technology, product sourcing, automation and engineering, design, kitting and fulfilment, logistics, and digital technology services. The company was incorporated in 1949 and is headquartered in Hawthorn, Australia.

About Sonoco Products

Sonoco Products Company, together with its subsidiaries, designs, develops, manufactures, and sells various engineered and sustainable packaging products in North and South America, Europe, Australia, and Asia. The company operates Consumer Packaging and Industrial Paper Packaging segments. The Consumer Packaging segment offers round and shaped rigid paper, steel, and plastic containers; metal and peelable membrane ends, closures, and components; thermoformed plastic trays and enclosures; and high-barrier flexible packaging products. The Industrial Paper Packaging segment provides paperboard tubes, cones, and cores; paper-based protective packaging products; and uncoated recycled paperboard products. It also offers various packaging materials, including plastic, paper, foam, and other specialty materials. Sonoco Products Company sells its products in various markets, which include paper, textile, film, food, packaging, construction, and wire and cable. The company was founded in 1899 and is headquartered in Hartsville, South Carolina.