Analyzing UFP Technologies (NASDAQ:UFPT) and Amcor (NYSE:AMCR)

Amcor (NYSE:AMCR) and UFP Technologies (NASDAQ:UFPT) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Earnings & Valuation

This table compares Amcor and UFP Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amcor	$15.01 billion	0.79	$511.00 million	$0.36	22.74
UFP Technologies	$588.56 million	2.65	$58.98 million	$8.63	23.44

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

Profitability

This table compares Amcor and UFP Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amcor	3.40%	19.43%	5.15%
UFP Technologies	11.40%	21.54%	12.00%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Amcor and UFP Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amcor	0	2	7	0	2.78
UFP Technologies	0	1	1	0	2.50

Amcor presently has a consensus price target of $11.42, indicating a potential upside of 39.48%. UFP Technologies has a consensus price target of $289.00, indicating a potential upside of 42.86%. Given UFP Technologies’ higher possible upside, analysts plainly believe UFP Technologies is more favorable than Amcor.

Insider & Institutional Ownership

45.1% of Amcor shares are owned by institutional investors. Comparatively, 87.3% of UFP Technologies shares are owned by institutional investors. 0.6% of Amcor shares are owned by company insiders. Comparatively, 4.4% of UFP Technologies shares are owned by company 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.

Volatility & Risk

Amcor has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, UFP Technologies has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Summary

UFP Technologies beats Amcor on 10 of the 14 factors compared between the two stocks.

About Amcor

Amcor plc develops, produces, and sells packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions. The company operates through two segments, Flexibles and Rigid Packaging. The Flexibles segment provides flexible and film packaging products in the food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries. The Rigid Packaging segment offers rigid containers for various beverage and food products, including carbonated soft drinks, water, juices, sports drinks, milk-based beverages, spirits and beer, sauces, dressings, spreads, and personal care items; and plastic caps for various applications. The company sells its products through its direct sales force. Amcor plc was incorporated in 2018 and is headquartered in Zurich, Switzerland.

About UFP Technologies

UFP Technologies, Inc. designs and manufactures solutions for medical devices, sterile packaging, and other highly engineered custom products. The company offers protective drapes for robotic surgery, single patient use surfaces, advanced wound care, infection prevention, disposables for surgical and endoscopic procedures, packaging for medical devices, orthopedic implants, biopharma drug manufacturing, and coils for catheters; and molded components for applications in acoustic insulation, interior trim, load floors, sunshades, SUV cargo cover handles, driveshaft damping, engine and manifold covers, quarter panels, and wheel liners. It also provides molded composites for commercial aviation and military gear for use in backpack components, knee and elbow pads, eyewear, and helmets; and reusable cases and custom for applications in military ballistics panels, virtual training systems, drones, communications equipment, and rugged portable computers. In addition, the company provides engineered products and components to customers in the automotive, aerospace and defense, and industrial markets for applications in military uniform and gear components, automotive interior trim, air filtration, and protective cases and inserts. It markets and sells its products through a direct sales force. The company was founded in 1963 and is headquartered in Newburyport, Massachusetts.