Owens-Illinois (NYSE: OI) and Bemis (NYSE:BMS) are both mid-cap industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.
This table compares Owens-Illinois and Bemis’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Bemis pays an annual dividend of $1.24 per share and has a dividend yield of 2.8%. Owens-Illinois does not pay a dividend. Bemis pays out 121.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Owens-Illinois has increased its dividend for 34 consecutive years.
Valuation and Earnings
This table compares Owens-Illinois and Bemis’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Owens-Illinois||$6.87 billion||0.53||$180.00 million||$1.10||20.26|
|Bemis||$4.05 billion||1.00||$94.00 million||$1.02||43.49|
Owens-Illinois has higher revenue and earnings than Bemis. Owens-Illinois is trading at a lower price-to-earnings ratio than Bemis, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
95.2% of Owens-Illinois shares are owned by institutional investors. Comparatively, 77.5% of Bemis shares are owned by institutional investors. 1.5% of Owens-Illinois shares are owned by company insiders. Comparatively, 1.1% of Bemis shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This is a breakdown of current recommendations for Owens-Illinois and Bemis, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Owens-Illinois currently has a consensus target price of $25.80, indicating a potential upside of 15.75%. Bemis has a consensus target price of $47.67, indicating a potential upside of 7.45%. Given Owens-Illinois’ stronger consensus rating and higher probable upside, analysts plainly believe Owens-Illinois is more favorable than Bemis.
Risk & Volatility
Owens-Illinois has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, Bemis has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.
Owens-Illinois beats Bemis on 12 of the 16 factors compared between the two stocks.
Owens-Illinois Company Profile
Owens-Illinois, Inc. is a manufacturer of glass container products. The Company’s principal product lines are glass containers for the food and beverage industries. The Company’s segments include Europe, North America, Latin America and Asia Pacific. The Company produces glass containers for alcoholic beverages, including beer, flavored malt beverages, spirits and wine. The Company also produces glass packaging for a range of food items, soft drinks, teas, juices and pharmaceuticals. The Company manufactures glass containers in a range of sizes, shapes and colors. The Company also provides engineering support for its glass manufacturing operations through facilities located in the United States, Australia, France, Poland, Colombia and Peru. As of December 31, 2016, the Company had 79 glass manufacturing plants in 23 countries. The Company has a distribution facility used to import glass containers from its business in Mexico.
Bemis Company Profile
Bemis Company, Inc. is a manufacturer of packaging products. The Company operates through two segments: U.S. Packaging and Global Packaging. The U.S. Packaging segment represents all food, consumer, and industrial products packaging-related manufacturing operations located in the United States. The Global Packaging segment includes all packaging-related manufacturing operations located outside of the United States, as well as global medical device and pharmaceutical packaging-related manufacturing operations. This segment manufactures multilayer polymer, blown and cast film structures to produce packaging sold for a range of food, medical, pharmaceutical, personal care, electronics, and industrial applications. Its products are sold to customers in the food industry. The Company’s other customers include companies in various types of businesses, including chemical, agribusiness, medical, pharmaceutical, personal care, electronics, construction, and other consumer goods.
Receive News & Ratings for Owens-Illinois Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Owens-Illinois and related companies with MarketBeat.com's FREE daily email newsletter.