UFP Technologies (NASDAQ: UFPT) and Graphic Packaging (NYSE:GPK) are both industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.
Graphic Packaging pays an annual dividend of $0.30 per share and has a dividend yield of 2.1%. UFP Technologies does not pay a dividend. Graphic Packaging pays out 30.9% of its earnings in the form of a dividend. UFP Technologies has increased its dividend for 2 consecutive years.
69.8% of UFP Technologies shares are held by institutional investors. Comparatively, 99.8% of Graphic Packaging shares are held by institutional investors. 13.3% of UFP Technologies shares are held by insiders. Comparatively, 1.0% of Graphic Packaging shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares UFP Technologies and Graphic Packaging’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|UFP Technologies||$147.84 million||1.43||$9.21 million||$1.26||22.98|
|Graphic Packaging||$4.40 billion||1.03||$300.20 million||$0.97||15.03|
Graphic Packaging has higher revenue and earnings than UFP Technologies. Graphic Packaging is trading at a lower price-to-earnings ratio than UFP Technologies, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for UFP Technologies and Graphic Packaging, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Graphic Packaging has a consensus price target of $17.08, suggesting a potential upside of 17.17%. Given Graphic Packaging’s higher possible upside, analysts clearly believe Graphic Packaging is more favorable than UFP Technologies.
Risk and Volatility
UFP Technologies has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500. Comparatively, Graphic Packaging has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.
This table compares UFP Technologies and Graphic Packaging’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Graphic Packaging beats UFP Technologies on 9 of the 16 factors compared between the two stocks.
About UFP Technologies
UFP Technologies, Inc. is a designer and custom converter of foams, plastics, composites and natural fiber materials. The Company is engaged in providing solutions to customers primarily within the medical, automotive, consumer, electronics, industrial, and aerospace and defense markets. It converts these materials using laminating, molding, and fabricating manufacturing technologies. The Company’s raw materials consist of polyethylene and polyurethane foams, sheet plastics, pulp fiber, cross-linked polyethylene and reticulated polyurethane foams, fabric and foam laminates, and natural fiber materials. The Company converts these materials to provide customers various solutions, including automotive interior trim, medical device components, disposable wound care components, military uniform and gear components, athletic padding, air filtration, high-temperature insulation, abrasive nail files and other beauty aids, and cushion packaging for their products.
About Graphic Packaging
Graphic Packaging Holding Company is a provider of paper-based packaging solutions for a range of products to food, beverage and other consumer product companies. The Company’s segments include Paperboard Mills, Americas Paperboard Packaging, Europe Paperboard Packaging, and Corporate and Other. The Paperboard Mills segment includes the Company’s North American paperboard mills, which produce primarily coated unbleached kraft and coated recycled board. As of December 31, 2016, the Company had seven paperboard mills in North America. The Americas Paperboard Packaging segment includes paperboard folding cartons sold primarily to consumer packaged goods (CPG) companies serving the food, beverage and consumer product markets in the Americas. The Europe Paperboard Packaging segment includes paperboard folding cartons sold primarily to CPG companies serving the food, beverage and consumer product markets in Europe. The Corporate and Other segment includes the Pacific Rim operating segment.
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