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

Amcor PLC and International Paper Company are both Packaging & Containers companies. Amcor PLC and International Paper Company are of similar size ($19.4B and $18.4B). International Paper Company has negative trailing earnings, so its P/E is not meaningful; Amcor PLC trades at 17.9×. Amcor PLC grew revenue faster over the last twelve months: 56.6% against 35.3%. Amcor PLC has the higher net margin (4.71% vs −14.2%) and the higher return on invested capital (17.9% vs 0.62%). Both pay a dividend; Amcor PLC yields more (5.45% vs 5.32%). Across the 22 metrics below, Amcor PLC leads on 17 and International Paper Company on 5.

Valuation

Metric AMCR IP Packaging & Containers median
P/E 17.94 n/m 15.79
P/S 0.84 0.87 0.88
P/B 1.67 1.45 1.60
Price to free cash flow 15.77 32.43 13.41
EV/EBITDA 3.63 9.42 9.04
EV/Sales 1.38 1.18 1.31
Earnings yield 5.58% (18.62%) 5.04%
Free cash flow yield 6.34% 3.08% 6.34%

Profitability

Metric AMCR IP Packaging & Containers median
Gross margin 19.95% 29.77% 20.03%
Operating margin 8.08% 0.90% 8.36%
Net margin 4.71% (14.20%) 4.53%
Free cash flow margin 5.31% 2.68% 5.14%
Return on equity 9.40% (20.79%) 11.28%
Return on assets 5.97% (8.72%) 4.29%
Return on invested capital 17.85% 0.62% 6.43%

Growth

Metric AMCR IP Packaging & Containers median
Revenue growth (TTM) 56.61% 35.30% 9.10%
EPS growth (last fiscal year) 46.66% (542.68%) —
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 0.57 0.78
Current ratio 1.25 1.10 1.29
Net debt to EBITDA 3.73 2.50 2.65

Dividend

Metric AMCR IP Packaging & Containers median
Dividend yield 5.45% 5.32% 2.79%
Payout ratio 0.69 0.46 0.28

Size

Metric AMCR IP Packaging & Containers median
Market cap 19.40b 18.44b 3.71b

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