Crown (NYSE:CCK) versus Winpak (OTCMKTS:WIPKF) Financial Survey

Winpak (OTCMKTS:WIPKF) and Crown (NYSE:CCK) are both materials companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Earnings & Valuation

This table compares Winpak and Crown”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Winpak	N/A	N/A	N/A	$1.17	27.04
Crown	$12.37 billion	1.07	$738.00 million	$6.95	17.00

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

Dividends

Winpak pays an annual dividend of $0.11 per share and has a dividend yield of 0.3%. Crown pays an annual dividend of $1.40 per share and has a dividend yield of 1.2%. Winpak pays out 9.4% of its earnings in the form of a dividend. Crown pays out 20.1% 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. Crown has increased its dividend for 4 consecutive years. Crown is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

21.0% of Winpak shares are owned by institutional investors. Comparatively, 90.9% of Crown shares are owned by institutional investors. 0.9% of Crown shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Winpak and Crown’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Winpak	N/A	N/A	N/A
Crown	5.91%	27.33%	6.52%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Winpak and Crown, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Winpak	0	2	0	0	2.00
Crown	0	6	11	0	2.65

Crown has a consensus price target of $128.20, suggesting a potential upside of 8.49%. Given Crown’s stronger consensus rating and higher probable upside, analysts plainly believe Crown is more favorable than Winpak.

Summary

Crown beats Winpak on 12 of the 14 factors compared between the two stocks.

About Winpak

Winpak Ltd. manufactures and distributes packaging materials and related packaging machines in the United States, Canada, and Mexico. The company operates is Flexible Packaging, Rigid Packaging and Flexible Lidding, and Packaging Machinery segments. The Flexible Packaging segment provides modified atmosphere packaging products for fresh and processed meats, poultry, cheese, medical device packaging, high-performance pouch, and high-barrier films for converting applications; specialty films, including barrier and non-barrier films converting applications, such as printing, laminating and bag making, as well as shrink bags; and biaxially oriented nylon films for food packaging and industrial applications. The Rigid Packaging and Flexible Lidding segment offers portion control and single-serve containers, as well as plastic sheet, custom, and retort trays; die-cut, daisy chain, and rollstock formats for food, dairy, beverage, pet food, industrial, and healthcare applications; and specialized printed packaging solutions for the pharmaceutical, healthcare, nutraceutical, cosmetic, and personal care markets. The Packaging Machinery segment provides horizontal fill/seal machines for preformed containers and vertical form/fill/seal pouch machines for pumpable liquid and semi-liquid, as well as various dry products. The company was incorporated in 1975 and is based in Winnipeg, Canada. Winpak Ltd. is a subsidiary of Wihuri International Oy.

About Crown

Crown Holdings, Inc., together with its subsidiaries, engages in the packaging business in the United States and internationally. It operates through Americas Beverage, European Beverage, Asia Pacific, and Transit Packaging segments. The company manufactures and sells recyclable aluminum beverage cans and ends, glass bottles, steel crowns, aluminum caps, non-beverage cans, and aerosol cans and closures. It also provides manual, semi-automatic, and automatic equipment and tools to apply and remove consumables, such as straps and films; protective solutions, including airbags, edge protectors, and honeycomb products; and steel and plastic consumables include steel strap, plastic strap, industrial film, and other related products. The company serves food industries, including pet food, personal care, household, and industrial products. Crown Holdings, Inc. was founded in 1892 and is headquartered in Yardley, Pennsylvania.