Comparing CCL Industries (OTCMKTS:CCDBF) & Amcor (NYSE:AMCR)

Amcor (NYSE:AMCR) and CCL Industries (OTCMKTS:CCDBF) are both large-cap materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Dividends

Amcor pays an annual dividend of $2.60 per share and has a dividend yield of 5.9%. CCL Industries pays an annual dividend of $1.04 per share and has a dividend yield of 1.5%. Amcor pays out 110.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CCL Industries pays out 40.2% of its earnings in the form of a dividend. Amcor has raised its dividend for 5 consecutive years. Amcor is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Amcor and CCL Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amcor	0	6	5	1	2.58
CCL Industries	0	1	4	0	2.80

Amcor presently has a consensus price target of $49.36, indicating a potential upside of 12.77%. Given Amcor’s higher possible upside, research analysts clearly believe Amcor is more favorable than CCL Industries.

Valuation and Earnings

This table compares Amcor and CCL Industries”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amcor	$23.51 billion	0.86	$177.00 million	$2.36	18.54
CCL Industries	$5.48 billion	1.95	$574.28 million	$2.59	26.39

CCL Industries has lower revenue, but higher earnings than Amcor. Amcor is trading at a lower price-to-earnings ratio than CCL Industries, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Amcor and CCL Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amcor	4.71%	15.92%	5.01%
CCL Industries	10.27%	14.75%	7.89%

Insider and Institutional Ownership

45.1% of Amcor shares are held by institutional investors. 0.3% of Amcor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Amcor beats CCL Industries on 9 of the 17 factors compared between the two stocks.

About Amcor

Amcor plc develops, produces, and sells packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions. The company operates through two segments, Flexibles and Rigid Packaging. The Flexibles segment provides flexible and film packaging products in the food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries. The Rigid Packaging segment offers rigid containers for various beverage and food products, including carbonated soft drinks, water, juices, sports drinks, milk-based beverages, spirits and beer, sauces, dressings, spreads, and personal care items; and plastic caps for various applications. The company sells its products through its direct sales force. Amcor plc was incorporated in 2018 and is headquartered in Zurich, Switzerland.

About CCL Industries

CCL Industries Inc. manufactures and sells labels, consumer printable media products, technology-driven label solutions, polymer banknote substrates, and specialty films. It operates through CCL, Avery, Checkpoint, and Innovia segments. The CCL segment converts pressure sensitive and extruded film materials for a range of decorative, instructional, security, and functional applications for government institutions and global customers in consumer packaging, healthcare, chemicals, consumer durables, electronic device, and automotive markets. The Avery segment supplies labels, specialty converted media, and software solutions to enable short-run digital printing in businesses and homes alongside complementary products sold through distributors, mass-market stores, and e-commerce retailers. The Checkpoint segment engages in developing radio frequency and radio frequency identification-based technology systems for loss prevention and inventory management applications, including labeling and tagging solutions for the retail and apparel industries. The Innovia segment supplies biaxially oriented polypropylene films to customers in the pressure sensitive label materials, flexible packaging, and consumer packaged goods industries. The company operates in Canada, the United States, Puerto Rico, Mexico, Brazil, Chile, Argentina, Europe, Asia, Australia, Africa, and New Zealand. CCL Industries Inc. was founded in 1951 and is headquartered in Toronto, Canada.