Ball Corporation (BALL) vs International Paper Company (IP)

Ball Corporation and International Paper Company are both Packaging & Containers companies. International Paper Company is the larger, with a market value of $18.4B against $15.0B — 1.2× the size. International Paper Company has negative trailing earnings, so its P/E is not meaningful; Ball Corporation trades at 16.1×. International Paper Company grew revenue faster over the last twelve months: 35.3% against 15.6%. Ball Corporation has the higher net margin (6.61% vs −14.2%) and the higher return on invested capital (7.34% vs 0.62%). Both pay a dividend; International Paper Company yields more (5.32% vs 1.40%). Across the 22 metrics below, Ball Corporation leads on 11 and International Paper Company on 11.

Valuation

Metric BALL IP Packaging & Containers median
P/E 16.10 n/m 15.79
P/S 1.05 0.87 0.88
P/B 2.62 1.45 1.60
Price to free cash flow 18.26 32.43 13.41
EV/EBITDA 10.35 9.42 9.04
EV/Sales 1.52 1.18 1.31
Earnings yield 6.21% (18.62%) 5.04%
Free cash flow yield 5.48% 3.08% 6.34%

Profitability

Metric BALL IP Packaging & Containers median
Gross margin 18.63% 29.77% 20.03%
Operating margin 10.25% 0.90% 8.36%
Net margin 6.61% (14.20%) 4.53%
Free cash flow margin 5.77% 2.68% 5.14%
Return on equity 17.15% (20.79%) 11.28%
Return on assets 4.89% (8.72%) 4.29%
Return on invested capital 7.34% 0.62% 6.43%

Growth

Metric BALL IP Packaging & Containers median
Revenue growth (TTM) 15.56% 35.30% 9.10%
EPS growth (last fiscal year) (74.62%) (542.68%) —
Revenue growth, 5-year CAGR 2.24% 6.12% 5.66%
Net income growth, 5-year CAGR 9.29% 0.00% 0.00%

Health

Metric BALL IP Packaging & Containers median
Debt to equity 1.25 0.57 0.78
Current ratio 1.07 1.10 1.29
Net debt to EBITDA 2.83 2.50 2.65

Dividend

Metric BALL IP Packaging & Containers median
Dividend yield 1.40% 5.32% 2.79%
Payout ratio 0.22 0.46 0.28

Size

Metric BALL IP Packaging & Containers median
Market cap 15.00b 18.44b 3.71b

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