Amcor PLC (AMCR) vs International Paper Company (IP)

Amcor PLC and International Paper Company are both Packaging & Containers companies. Amcor PLC is the larger, with a market value of $21.2B against $18.1B — 1.2× the size. International Paper Company has negative trailing earnings, so its P/E is not meaningful; Amcor PLC trades at 19.4×. Amcor PLC grew revenue faster over the last twelve months: 56.6% against 12.2%. Amcor PLC has the higher net margin (4.71% vs −14.3%) and the higher return on invested capital (17.9% vs 2.15%). Both pay a dividend; Amcor PLC yields more (5.64% vs 5.39%). Across the 22 metrics below, Amcor PLC leads on 16 and International Paper Company on 6.

Valuation

Metric AMCR IP Packaging & Containers median
P/E 19.44 n/m 20.50
P/S 0.91 0.75 0.84
P/B 1.81 1.38 1.81
Price to free cash flow 24.28 63.00 13.39
EV/EBITDA 3.82 8.28 9.53
EV/Sales 1.45 1.04 1.39
Earnings yield 5.14% (19.11%) 2.89%
Free cash flow yield 4.12% 1.59% 5.42%

Profitability

Metric AMCR IP Packaging & Containers median
Gross margin 19.95% 29.80% 20.09%
Operating margin 8.08% 2.85% 6.42%
Net margin 4.71% (14.32%) 3.43%
Free cash flow margin 3.74% 1.19% 4.78%
Return on equity 9.40% (22.73%) 2.28%
Return on assets 5.97% (9.09%) 1.04%
Return on invested capital 17.85% 2.15% 4.57%

Growth

Metric AMCR IP Packaging & Containers median
Revenue growth (TTM) 56.61% 12.19% 4.05%
EPS growth (last fiscal year) 46.66% (542.68%) 0.69%
Revenue growth, 5-year CAGR 12.82% 6.12% 5.66%
Net income growth, 5-year CAGR 3.33% 0.00% 0.00%

Health

Metric AMCR IP Packaging & Containers median
Debt to equity 1.18 0.59 0.79
Current ratio 1.25 1.01 1.29
Net debt to EBITDA 3.73 2.50 2.59

Dividend

Metric AMCR IP Packaging & Containers median
Dividend yield 5.64% 5.39% 3.38%
Payout ratio 1.10 — 0.60

Size

Metric AMCR IP Packaging & Containers median
Market cap 21.19b 18.13b 3.71b

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