Ardagh Metal Packaging (NYSE:AMBP – Get Free Report) and International Paper (NYSE:IP – Get Free Report) are both materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
Dividends
Ardagh Metal Packaging pays an annual dividend of $0.40 per share and has a dividend yield of 8.7%. International Paper pays an annual dividend of $1.85 per share and has a dividend yield of 5.5%. Ardagh Metal Packaging pays out 444.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. International Paper pays out -28.2% of its earnings in the form of a dividend.
Risk & Volatility
Ardagh Metal Packaging has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, International Paper has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.
Profitability
This table compares Ardagh Metal Packaging and International Paper’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ardagh Metal Packaging | 0.93% | -23.24% | 3.02% |
| International Paper | -14.32% | 1.77% | 0.69% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Ardagh Metal Packaging and International Paper, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ardagh Metal Packaging | 0 | 5 | 1 | 0 | 2.17 |
| International Paper | 1 | 3 | 10 | 0 | 2.64 |
Ardagh Metal Packaging presently has a consensus target price of $4.88, indicating a potential upside of 5.79%. International Paper has a consensus target price of $45.44, indicating a potential upside of 33.94%. Given International Paper’s stronger consensus rating and higher probable upside, analysts clearly believe International Paper is more favorable than Ardagh Metal Packaging.
Valuation and Earnings
This table compares Ardagh Metal Packaging and International Paper”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ardagh Metal Packaging | $5.50 billion | 0.50 | $11.00 million | $0.09 | 51.20 |
| International Paper | $23.63 billion | 0.76 | -$3.52 billion | ($6.56) | -5.17 |
Ardagh Metal Packaging has higher earnings, but lower revenue than International Paper. International Paper is trading at a lower price-to-earnings ratio than Ardagh Metal Packaging, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
16.9% of Ardagh Metal Packaging shares are owned by institutional investors. Comparatively, 82.0% of International Paper shares are owned by institutional investors. 0.0% of Ardagh Metal Packaging shares are owned by insiders. Comparatively, 0.2% of International Paper shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
International Paper beats Ardagh Metal Packaging on 11 of the 16 factors compared between the two stocks.
About Ardagh Metal Packaging
Ardagh Metal Packaging S.A. (NYSE: AMBP) manufactures and supplies metal beverage cans and ends for beverage companies and brand owners. Its products are used for drinks including beer, soft drinks and energy beverages. The company serves customers in Europe, North America and Brazil through its manufacturing operations. Its metal packaging is designed to be recyclable. Ardagh Metal Packaging became a separately listed company in 2021 following its separation from Ardagh Group, which remains its majority shareholder.
About International Paper
International Paper is a global producer of fiber-based packaging and pulp products. Its packaging offerings include containerboard and corrugated packaging used to protect and transport goods, while its pulp products serve a range of consumer and industrial applications. The company traces its origins to 1898, when several U.S. paper manufacturers combined to form International Paper. Over time, it has evolved through acquisitions and changes to its business, with a focus on renewable, fiber-based materials and packaging solutions.
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