Analyzing O-I Glass (NYSE:OI) and Silgan (NYSE:SLGN)

O-I Glass (NYSE:OI) and Silgan (NYSE:SLGN) are both materials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Risk and Volatility

O-I Glass has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Silgan has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Profitability

This table compares O-I Glass and Silgan’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
O-I Glass	-18.13%	10.40%	1.43%
Silgan	4.05%	16.74%	4.09%

Earnings and Valuation

This table compares O-I Glass and Silgan”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
O-I Glass	$6.43 billion	0.14	-$129.00 million	($7.52)	-0.78
Silgan	$6.68 billion	0.57	$288.40 million	$2.55	14.08

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

Insider and Institutional Ownership

97.2% of O-I Glass shares are owned by institutional investors. Comparatively, 70.3% of Silgan shares are owned by institutional investors. 1.0% of O-I Glass shares are owned by insiders. Comparatively, 1.1% of Silgan shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for O-I Glass and Silgan, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
O-I Glass	2	3	4	0	2.22
Silgan	0	3	8	1	2.83

O-I Glass currently has a consensus price target of $10.31, indicating a potential upside of 76.13%. Silgan has a consensus price target of $54.00, indicating a potential upside of 50.40%. Given O-I Glass’ higher possible upside, research analysts clearly believe O-I Glass is more favorable than Silgan.

Summary

Silgan beats O-I Glass on 13 of the 15 factors compared between the two stocks.

About O-I Glass

O-I Glass, Inc., through its subsidiaries, engages in the manufacture and sale of glass containers to food and beverage manufacturers primarily in the Americas, Europe, and internationally. The company produces glass containers for alcoholic beverages, including beer, flavored malt beverages, spirits, and wine. It is also involved in the production of glass packaging for various food items, soft drinks, tea, juices, and pharmaceuticals. In addition, the company offers glass containers in a range of sizes, shapes, and colors. It sells its products directly to customers under annual or multi-year supply agreements, as well as through distributors. O-I Glass, Inc. was founded in 1903 and is based in Perrysburg, Ohio.

About Silgan

Silgan Holdings Inc., together with its subsidiaries, manufactures and sells rigid packaging solutions for consumer goods products in the United States and internationally. It operates through three segments: Dispensing and Specialty Closures, Metal Containers, and Custom Containers. The Dispensing and Specialty Closures segment offers a range of metal and plastic closures, and dispensing systems for food, beverage, health care, garden, home, personal care, beauty products, and hard surface cleaning products, as well as capping/sealing equipment and detection systems. The Metal Containers segment manufactures and sells steel and aluminum containers for food products, such as pet food, vegetables, soups, proteins, fruits, and other miscellaneous food products, as well as general line metal containers primarily for chemicals. The Custom Containers segment manufactures and sells custom designed and stock plastic containers for use in personal care and health care; food and beverage; household and industrial chemical; pharmaceutical; pet food and care; agricultural; automotive. This segment also provides thermoformed barrier and non-barrier bowls, and trays for food products, such as soups, other ready-to-eat meals, and pet food products; and plastic closures, caps, sifters, and fitments, as well as thermoformed tubs for food, household, and personal care products. The company markets its products primarily through direct sales force, as well as through a network of distributors, and an online shopping catalog. The company was founded in 1987 and is headquartered in Stamford, Connecticut.