Comparing Multi Packaging Solutions Intrntnl (MPSX) & Sonoco Products (SON)

Multi Packaging Solutions Intrntnl (NYSE: MPSX) and Sonoco Products (NYSE:SON) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

99.2% of Multi Packaging Solutions Intrntnl shares are owned by institutional investors. Comparatively, 75.4% of Sonoco Products shares are owned by institutional investors. 0.9% of Multi Packaging Solutions Intrntnl shares are owned by company insiders. Comparatively, 1.9% of Sonoco Products shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Multi Packaging Solutions Intrntnl and Sonoco Products, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Multi Packaging Solutions Intrntnl	0	4	1	0	2.20
Sonoco Products	2	5	1	0	1.88

Multi Packaging Solutions Intrntnl currently has a consensus price target of $17.00, suggesting a potential downside of 5.56%. Sonoco Products has a consensus price target of $51.83, suggesting a potential upside of 7.01%. Given Sonoco Products’ higher probable upside, analysts clearly believe Sonoco Products is more favorable than Multi Packaging Solutions Intrntnl.

Profitability

This table compares Multi Packaging Solutions Intrntnl and Sonoco Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Multi Packaging Solutions Intrntnl	2.69%	10.01%	2.48%
Sonoco Products	5.61%	16.64%	6.51%

Volatility & Risk

Multi Packaging Solutions Intrntnl has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500. Comparatively, Sonoco Products has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Dividends

Sonoco Products pays an annual dividend of $1.56 per share and has a dividend yield of 3.2%. Multi Packaging Solutions Intrntnl does not pay a dividend. Sonoco Products pays out 59.1% of its earnings in the form of a dividend. Sonoco Products has raised its dividend for 36 consecutive years.

Earnings & Valuation

This table compares Multi Packaging Solutions Intrntnl and Sonoco Products’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Multi Packaging Solutions Intrntnl	N/A	N/A	N/A	$0.12	150.01
Sonoco Products	$4.76 billion	1.01	$589.72 million	$2.64	18.35

Sonoco Products has higher revenue and earnings than Multi Packaging Solutions Intrntnl. Sonoco Products is trading at a lower price-to-earnings ratio than Multi Packaging Solutions Intrntnl, indicating that it is currently the more affordable of the two stocks.

Summary

Sonoco Products beats Multi Packaging Solutions Intrntnl on 9 of the 13 factors compared between the two stocks.

About Multi Packaging Solutions Intrntnl

Multi Packaging Solutions International Limited is a provider of specialty packaging solutions for the consumer, healthcare and multi-media markets. The Company operates through three segments: North America, Europe and Asia. The Company’s print-based specialty packaging solutions include premium folding cartons, inserts, labels and rigid packaging across a range of substrates and finishes, which are complemented by value-added services, including design, new product development and supply chain solutions. In addition, the Company provides supply chain services, such as vendor managed inventory (VMI), specific carton-by-carton scan ability and data, which enable the customer to track a product from manufacturer to end user. The Company’s packaging solutions utilize a range of substrates, including paper and paperboard, pressure sensitive labels, plastic and foil, and finishes, including ultra violet (UV) coatings, film lamination, stamping and embossing.

About Sonoco Products

Sonoco Products Company is engaged in manufacturing of industrial and consumer packaging products, and providing packaging services. The Company operates in four segments: Consumer Packaging, Paper and Industrial Converted Products, Display and Packaging, and Protective Solutions. Its Consumer Packaging segment’s products and services include round composite cans, aluminum, steel and peelable membrane easy-open closures for composite and metal cans; plastic bottles, cups and trays, and printed flexible packaging and global brand management. The Display and Packaging segment’s products and services include point-of-purchase displays; fulfilment; supply chain management, and paperboard specialties. Its Paper and Industrial Converted Products segment provides the raw material for its fiber-based packaging. The Protective Solutions segment’s products and services include custom-engineered and expanded foam protective packaging and components, and temperature-assured packaging.