AptarGroup (NYSE:ATR) and Winpak (OTCMKTS:WIPKF) Head to Head Analysis

Winpak (OTCMKTS:WIPKF) and AptarGroup (NYSE:ATR) are both materials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent ratings for Winpak and AptarGroup, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Winpak	0	2	0	0	2.00
AptarGroup	0	3	5	0	2.62

AptarGroup has a consensus target price of $172.80, indicating a potential upside of 26.39%. Given AptarGroup’s stronger consensus rating and higher possible upside, analysts clearly believe AptarGroup is more favorable than Winpak.

Earnings & Valuation

This table compares Winpak and AptarGroup”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Winpak	N/A	N/A	N/A	$1.17	26.87
AptarGroup	$3.78 billion	2.31	$392.79 million	$5.53	24.72

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

Dividends

Winpak pays an annual dividend of $0.11 per share and has a dividend yield of 0.4%. AptarGroup pays an annual dividend of $1.92 per share and has a dividend yield of 1.4%. Winpak pays out 9.4% of its earnings in the form of a dividend. AptarGroup pays out 34.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. AptarGroup has increased its dividend for 31 consecutive years. AptarGroup is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Winpak and AptarGroup’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Winpak	N/A	N/A	N/A
AptarGroup	9.22%	13.31%	6.96%

Insider & Institutional Ownership

21.0% of Winpak shares are owned by institutional investors. Comparatively, 88.5% of AptarGroup shares are owned by institutional investors. 0.7% of AptarGroup shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

AptarGroup beats Winpak on 12 of the 14 factors compared between the two stocks.

About Winpak

Winpak Ltd. manufactures and distributes packaging materials and related packaging machines in the United States, Canada, and Mexico. The company operates is Flexible Packaging, Rigid Packaging and Flexible Lidding, and Packaging Machinery segments. The Flexible Packaging segment provides modified atmosphere packaging products for fresh and processed meats, poultry, cheese, medical device packaging, high-performance pouch, and high-barrier films for converting applications; specialty films, including barrier and non-barrier films converting applications, such as printing, laminating and bag making, as well as shrink bags; and biaxially oriented nylon films for food packaging and industrial applications. The Rigid Packaging and Flexible Lidding segment offers portion control and single-serve containers, as well as plastic sheet, custom, and retort trays; die-cut, daisy chain, and rollstock formats for food, dairy, beverage, pet food, industrial, and healthcare applications; and specialized printed packaging solutions for the pharmaceutical, healthcare, nutraceutical, cosmetic, and personal care markets. The Packaging Machinery segment provides horizontal fill/seal machines for preformed containers and vertical form/fill/seal pouch machines for pumpable liquid and semi-liquid, as well as various dry products. The company was incorporated in 1975 and is based in Winnipeg, Canada. Winpak Ltd. is a subsidiary of Wihuri International Oy.

About AptarGroup

AptarGroup, Inc. designs and manufactures a range of drug delivery, consumer product dispensing, and active material science solutions and services for the pharmaceutical, beauty, personal care, home care, and food and beverage markets. The company operates through Aptar Pharma, Aptar Beauty, and Aptar Closures segments. It also provides pumps for nasal allergy treatments; and metered dose inhaler valves for respiratory ailments, such as asthma and chronic obstructive pulmonary diseases; elastomer for injectable primary packaging components; and active material science solutions. In addition, the company offers dispensing pumps, closures, elastomeric components, and aerosol valves to the digital health solutions. It primarily sells its products and services in Asia, Europe, Latin America, and North America. AptarGroup, Inc. was incorporated in 1992 and is headquartered in Crystal Lake, Illinois.