Critical Survey: AptarGroup (ATR) & Apogee Enterprises (APOG)

AptarGroup (NYSE: ATR) and Apogee Enterprises (NASDAQ:APOG) are both industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Insider and Institutional Ownership

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92.2% of AptarGroup shares are owned by institutional investors. Comparatively, 99.8% of Apogee Enterprises shares are owned by institutional investors. 5.3% of AptarGroup shares are owned by company insiders. Comparatively, 3.1% of Apogee Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

AptarGroup pays an annual dividend of $1.28 per share and has a dividend yield of 1.5%. Apogee Enterprises pays an annual dividend of $0.63 per share and has a dividend yield of 1.4%. AptarGroup pays out 37.4% of its earnings in the form of a dividend. Apogee Enterprises pays out 22.7% 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 5 consecutive years. AptarGroup is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

AptarGroup has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Apogee Enterprises has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500.

Earnings and Valuation

This table compares AptarGroup and Apogee Enterprises’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AptarGroup $2.47 billion 2.22 $220.03 million $3.42 25.79
Apogee Enterprises $1.11 billion 1.12 $85.79 million $2.78 15.82

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

Profitability

This table compares AptarGroup and Apogee Enterprises’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AptarGroup 8.91% 16.97% 7.50%
Apogee Enterprises 6.24% 17.99% 9.73%

Analyst Ratings

This is a breakdown of current recommendations for AptarGroup and Apogee Enterprises, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AptarGroup 1 6 1 0 2.00
Apogee Enterprises 0 0 2 0 3.00

AptarGroup presently has a consensus target price of $84.14, indicating a potential downside of 4.61%. Apogee Enterprises has a consensus target price of $61.00, indicating a potential upside of 38.70%. Given Apogee Enterprises’ stronger consensus rating and higher probable upside, analysts plainly believe Apogee Enterprises is more favorable than AptarGroup.

Summary

AptarGroup beats Apogee Enterprises on 9 of the 17 factors compared between the two stocks.

About AptarGroup

AptarGroup, Inc. is a provider of a range of packaging, dispensing and sealing solutions, primarily for the beauty, personal care, homecare, prescription drug, consumer healthcare, injectables, food and beverage markets. The Company has manufacturing facilities located throughout the world, including North America, Europe, Asia and South America. The Company operates through three segments: Beauty + Home, Pharma and Food + Beverage. It offers various dispensing and sealing solutions. Its primary products are dispensing pumps, closures, aerosol valves and elastomeric primary packaging components. Its elastomeric components also include pre filled syringe components, such as plungers, needle shields, tip caps and cartridges, as well as dropper bulbs and syringe plungers. Its Beauty + Home segment primarily sells pumps, closures, aerosol valves, accessories and sealing solutions to the personal care and home care markets, and pumps and decorative components to the beauty market.

About Apogee Enterprises

Apogee Enterprises, Inc. designs and develops glass products and services in the United States, Canada, and Brazil. The company operates through four segments: Architectural Glass, Architectural Framing Systems, Architectural Services, and Large-Scale Optical Technologies (LSO). The Architectural Glass segment fabricates coated and high-performance glass used in customized windows and wall systems comprising the outside skin of commercial, institutional, and multi-family residential buildings. The Architectural Framing Systems segment designs, engineers, fabricates, and finishes the aluminum frames used in customized aluminum and glass windows, curtain walls, storefronts, and entrance systems comprising the outside skin, as well as entrances of commercial, institutional, and multi-family residential buildings. The Architectural Services segment provides full-service installation of the walls of glass, windows, and other curtainwall products making up the outside skin of commercial and institutional buildings. The LSO segment manufactures value-added glass and acrylic products for the custom picture framing and display applications. The company's products and services are primarily used in commercial buildings, such as office towers, hotels, and retail centers; and institutional buildings, including education facilities and dormitories, health care facilities, and government buildings, as well as multi-family residential buildings. It markets its architectural products and services through direct sales force, independent sales representatives, and distributors to general contractors and glazing subcontractors, architects, and building owners; and value-added glass and acrylics through retail chains, picture framing shops, and independent distributors to museums, and public and private galleries and collections. Apogee Enterprises, Inc. was founded in 1949 and is headquartered in Minneapolis, Minnesota.

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