Critical Analysis: Myers Industries (NYSE:MYE) versus Ardagh Metal Packaging (NYSE:AMBP)

Myers Industries (NYSE:MYE) and Ardagh Metal Packaging (NYSE:AMBP) are both materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Insider & Institutional Ownership

90.8% of Myers Industries shares are owned by institutional investors. Comparatively, 16.9% of Ardagh Metal Packaging shares are owned by institutional investors. 1.9% of Myers Industries shares are owned by insiders. Comparatively, 0.0% of Ardagh Metal Packaging shares are owned by 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 Myers Industries and Ardagh Metal Packaging’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Myers Industries	3.99%	20.34%	7.30%
Ardagh Metal Packaging	0.93%	-23.24%	3.02%

Dividends

Myers Industries pays an annual dividend of $0.54 per share and has a dividend yield of 2.0%. Ardagh Metal Packaging pays an annual dividend of $0.40 per share and has a dividend yield of 8.5%. Myers Industries pays out 71.1% of its earnings in the form of a dividend. Ardagh Metal Packaging pays out 444.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Myers Industries and Ardagh Metal Packaging, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Myers Industries	0	1	2	0	2.67
Ardagh Metal Packaging	0	5	1	0	2.17

Myers Industries currently has a consensus price target of $37.00, suggesting a potential upside of 36.85%. Ardagh Metal Packaging has a consensus price target of $4.88, suggesting a potential upside of 3.17%. Given Myers Industries’ stronger consensus rating and higher possible upside, analysts plainly believe Myers Industries is more favorable than Ardagh Metal Packaging.

Volatility and Risk

Myers Industries has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Ardagh Metal Packaging has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Valuation & Earnings

This table compares Myers Industries and Ardagh Metal Packaging”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Myers Industries	$825.74 million	1.23	$34.93 million	$0.76	35.57
Ardagh Metal Packaging	$5.50 billion	0.51	$11.00 million	$0.09	52.50

Myers Industries has higher earnings, but lower revenue than Ardagh Metal Packaging. Myers Industries 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.

Summary

Myers Industries beats Ardagh Metal Packaging on 13 of the 16 factors compared between the two stocks.

About Myers Industries

Myers Industries, Inc. engages in distribution of tire service supplies in Ohio. It operates through two segments, The Material Handling and Distribution. The Material Handling segment offers pallets, small parts bins, bulk shipping containers, and OEM parts, as well as storage and organization, and custom plastic products; and injection molded, rotationally molded or blow molded products, consumer fuel containers and tanks for water, fuel, and waste handling. It serves industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational and marine vehicles, healthcare, appliance, bakery, electronics, textiles, consumer markets, and other markets under Akro-Mils, Jamco, Buckhorn, Ameri-Kart, Scepter, Elkhart Plastics, Trilogy Plastics, and Signature Systems brands directly to end-users, as well as through distributors. The Distribution segment engages in the distribution of tools, equipment, and supplies for tire, wheel, and under-vehicle service on passenger, heavy truck, and off-road vehicles; and manufacture and sale of tire repair materials and custom rubber products, as well as reflective highway marking tapes under the Myers Tire Supply, Myers Tire Supply International, Tuffy Manufacturing, Mohawk Rubber Sales, Patch Rubber Company, Elrick, Fleetline, MTS, Seymoure, Advance Traffic Markings, and MXP brands. This segment serves retail and truck tire dealers, commercial auto and truck fleets, auto dealers, general service and repair centers, tire re-treaders, truck stop operations, and government agencies. Myers Industries, Inc. was founded in 1933 and is headquartered in Akron, Ohio.

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.