Financial Analysis: O-I Glass (NYSE:OI) vs. Amcor (NYSE:AMCR)

O-I Glass (NYSE:OI) and Amcor (NYSE:AMCR) are both materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Risk and Volatility

O-I Glass has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Amcor has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Dividends

O-I Glass pays an annual dividend of $0.20 per share and has a dividend yield of 2.8%. Amcor pays an annual dividend of $2.60 per share and has a dividend yield of 5.7%. O-I Glass pays out -2.7% of its earnings in the form of a dividend. Amcor pays out 110.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Amcor has increased its dividend for 5 consecutive years. Amcor is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares O-I Glass and Amcor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
O-I Glass	-18.13%	10.40%	1.43%
Amcor	4.71%	15.92%	5.01%

Insider & Institutional Ownership

97.2% of O-I Glass shares are owned by institutional investors. Comparatively, 45.1% of Amcor shares are owned by institutional investors. 1.0% of O-I Glass shares are owned by insiders. Comparatively, 0.3% of Amcor shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for O-I Glass and Amcor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
O-I Glass	2	3	4	0	2.22
Amcor	0	7	7	1	2.60

O-I Glass currently has a consensus price target of $10.31, indicating a potential upside of 46.07%. Amcor has a consensus price target of $49.49, indicating a potential upside of 8.11%. Given O-I Glass’ higher possible upside, research analysts plainly believe O-I Glass is more favorable than Amcor.

Valuation and Earnings

This table compares O-I Glass and Amcor”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
O-I Glass	$6.36 billion	0.17	-$129.00 million	($7.52)	-0.94
Amcor	$23.51 billion	0.90	$177.00 million	$2.36	19.40

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

Summary

Amcor beats O-I Glass on 13 of the 18 factors compared between the two stocks.

About O-I Glass

O-I Glass, Inc., through its subsidiaries, engages in the manufacture and sale of glass containers to food and beverage manufacturers primarily in the Americas, Europe, and internationally. The company produces glass containers for alcoholic beverages, including beer, flavored malt beverages, spirits, and wine. It is also involved in the production of glass packaging for various food items, soft drinks, tea, juices, and pharmaceuticals. In addition, the company offers glass containers in a range of sizes, shapes, and colors. It sells its products directly to customers under annual or multi-year supply agreements, as well as through distributors. O-I Glass, Inc. was founded in 1903 and is based in Perrysburg, Ohio.

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.