Financial Analysis: Transcontinental (TCLCF) and Its Competitors

Institutional & Insider Ownership

0.0% of Transcontinental shares are held by institutional investors. Comparatively, 39.5% of shares of all “Commercial Services & Supplies” companies are held by institutional investors. 16.7% of shares of all “Commercial Services & Supplies” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Transcontinental pays an annual dividend of $0.62 per share and has a dividend yield of 11.1%. Transcontinental pays out 46.6% of its earnings in the form of a dividend. As a group, “Commercial Services & Supplies” companies pay a dividend yield of 2.5% and pay out 62.4% of their earnings in the form of a dividend. Transcontinental is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Profitability

This table compares Transcontinental and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transcontinental	N/A	N/A	N/A
Transcontinental Competitors	-61.04%	-122.73%	-1.38%

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Transcontinental	N/A	N/A	4.19
Transcontinental Competitors	$2.43 billion	$138.82 million	22.64

Transcontinental’s competitors have higher revenue and earnings than Transcontinental. Transcontinental 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

Transcontinental beats its competitors on 5 of the 9 factors compared.

About Transcontinental

Transcontinental Inc. engages in the flexible packaging business in Canada, the United States, Latin America, the United Kingdom, Australia, and New Zealand. It operates through Packaging, Printing, and Media sectors. The Packaging sector engages in the extrusion, lamination, printing, and converting packaging solutions; and manufacturing and recycling flexible plastic, including rollstock, bags and pouches, coextruded films, shrink films and bags, and advanced coatings. This sector serves agriculture, beverage, cheese and dairy, coffee and tea, frozen, health and wellness, home and personal care, industrial, lawn and garden, meat and protein, pet food, snacks, confection and dairy foods, tobacco, music, and entertainment markets, as well as supermarkets. The Printing sector provides integrated services for retailers, such as premedia services, flyer and in-store marketing product printing, and door-to-door distribution, as well as print solutions for newspapers, magazines, 4-color books, and personalized and mass marketing products. The Media sector is involved in printing and digital publishing of educational and trade books, and specialized publications for professionals and newspapers in French and English. Transcontinental Inc. was founded in 1976 and is headquartered in Montreal, Canada.