Head-To-Head Comparison: Amcor (NYSE:AMCR) & Ardagh Metal Packaging (NYSE:AMBP)

Ardagh Metal Packaging (NYSE:AMBP) and Amcor (NYSE:AMCR) are both materials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Dividends

Ardagh Metal Packaging pays an annual dividend of $0.40 per share and has a dividend yield of 8.0%. Amcor pays an annual dividend of $2.60 per share and has a dividend yield of 5.8%. Ardagh Metal Packaging pays out 666.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Amcor has raised its dividend for 5 consecutive years.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ardagh Metal Packaging	$5.50 billion	0.54	$11.00 million	$0.06	83.17
Amcor	$23.51 billion	0.89	$177.00 million	$2.36	19.14

Amcor has higher revenue and earnings than Ardagh Metal Packaging. Amcor is trading at a lower price-to-earnings ratio than Ardagh Metal Packaging, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for Ardagh Metal Packaging and Amcor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ardagh Metal Packaging	0	6	1	0	2.14
Amcor	0	7	7	1	2.60

Ardagh Metal Packaging currently has a consensus target price of $4.92, suggesting a potential downside of 1.47%. Amcor has a consensus target price of $49.49, suggesting a potential upside of 9.57%. Given Amcor’s stronger consensus rating and higher possible upside, analysts clearly believe Amcor is more favorable than Ardagh Metal Packaging.

Institutional and Insider Ownership

16.9% of Ardagh Metal Packaging shares are held by institutional investors. Comparatively, 45.1% of Amcor shares are held by institutional investors. 0.0% of Ardagh Metal Packaging shares are held by company insiders. Comparatively, 0.3% of Amcor shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Ardagh Metal Packaging and Amcor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ardagh Metal Packaging	0.68%	-27.93%	3.09%
Amcor	4.71%	15.92%	5.01%

Volatility and Risk

Ardagh Metal Packaging has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, Amcor has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Summary

Amcor beats Ardagh Metal Packaging on 16 of the 18 factors compared between the two stocks.

About Ardagh Metal Packaging

Ardagh Metal Packaging S.A., together with its subsidiaries, supplies consumer metal beverage cans in Europe, the United States, and Brazil. Its products are used in various end-use categories, including beer, carbonated soft drinks, energy drinks, hard seltzers, juices, pre-mixed cocktails, teas, sparkling waters, and wine. The company serves beverage producers. Ardagh Metal Packaging S.A. is based in Luxembourg, Luxembourg. Ardagh Metal Packaging S.A. is a subsidiary of Ardagh Group S.A.

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.