Head-To-Head Analysis: CCL Industries (OTCMKTS:CCDBF) vs. Amcor (NYSE:AMCR)

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

Insider and Institutional Ownership

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

Dividends

CCL Industries pays an annual dividend of $1.04 per share and has a dividend yield of 1.6%. Amcor pays an annual dividend of $2.60 per share and has a dividend yield of 6.2%. CCL Industries pays out 40.2% of its earnings in the form of a dividend. 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. Amcor is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CCL Industries	0	1	4	0	2.80
Amcor	0	6	6	1	2.62

Amcor has a consensus price target of $49.49, indicating a potential upside of 18.17%. Given Amcor’s higher probable upside, analysts plainly believe Amcor is more favorable than CCL Industries.

Profitability

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

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

Valuation and Earnings

This table compares CCL Industries and Amcor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CCL Industries	$5.48 billion	1.89	$574.28 million	$2.59	25.47
Amcor	$23.51 billion	0.82	$177.00 million	$2.36	17.75

CCL Industries has higher earnings, but lower revenue 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.

Summary

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

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.

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.