Ball Corporation (BALL) vs Packaging Corporation of America (PKG)

Ball Corporation and Packaging Corporation of America are both Packaging & Containers companies. Packaging Corporation of America is the larger, with a market value of $22.2B against $17.4B — 1.3× the size. Packaging Corporation of America trades at the lower P/E: 30.6× against 33.0×. Ball Corporation grew revenue faster over the last twelve months: 19.2% against 12.0%. Packaging Corporation of America has the higher net margin (7.37% vs 3.52%) and the lower return on invested capital (0.00% vs 4.57%). Both pay a dividend; Packaging Corporation of America yields more (2.21% vs 1.22%). Across the 23 metrics below, Packaging Corporation of America leads on 13 and Ball Corporation on 10.

Valuation

Metric BALL PKG Packaging & Containers median
P/E 33.01 30.55 19.19
P/S 1.15 2.26 0.82
P/B 3.02 4.77 1.76
Price to free cash flow 28.84 29.85 12.39
EV/EBITDA 15.45 14.30 8.92
EV/Sales 1.60 2.65 1.33
Earnings yield 3.03% 3.27% 2.91%
Free cash flow yield 3.47% 3.35% 6.15%

Profitability

Metric BALL PKG Packaging & Containers median
Gross margin 17.84% 20.53% 20.00%
Operating margin 6.10% 11.16% 6.42%
Net margin 3.52% 7.37% 3.43%
Free cash flow margin 3.98% 0.00% 4.78%
Return on equity 9.51% 0.00% 0.00%
Return on assets 2.73% 0.00% 1.04%
Return on invested capital 4.57% 0.00% 4.57%

Growth

Metric BALL PKG Packaging & Containers median
Revenue growth (TTM) 19.23% 11.98% 4.05%
EPS growth (last fiscal year) (74.62%) (3.92%) 0.69%
Revenue growth, 5-year CAGR 2.24% 6.19% 5.66%
Net income growth, 5-year CAGR 9.29% 10.95% 0.00%

Health

Metric BALL PKG Packaging & Containers median
Debt to equity 1.27 0.85 0.79
Current ratio 1.04 2.94 1.33
Net debt to EBITDA 2.83 1.91 2.59

Dividend

Metric BALL PKG Packaging & Containers median
Dividend yield 1.22% 2.21% 3.54%
Payout ratio 0.40 0.68 0.60

Size

Metric BALL PKG Packaging & Containers median
Market cap 17.42b 22.17b 3.71b

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