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 $21.2B against $15.0B — 1.4× the size. Ball Corporation trades at the lower P/E: 16.1× against 30.7×. Ball Corporation grew revenue faster over the last twelve months: 15.6% against 10.4%. Packaging Corporation of America has the higher net margin (7.21% vs 6.61%) and the higher return on invested capital (8.05% vs 7.34%). Both pay a dividend; Packaging Corporation of America yields more (3.01% vs 1.40%). 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 16.10 30.68 15.79
P/S 1.05 2.20 0.88
P/B 2.62 4.50 1.60
Price to free cash flow 18.26 28.21 13.41
EV/EBITDA 10.35 13.63 9.04
EV/Sales 1.52 2.60 1.31
Earnings yield 6.21% 3.26% 5.04%
Free cash flow yield 5.48% 3.54% 6.34%

Profitability

Metric BALL PKG Packaging & Containers median
Gross margin 18.63% 20.11% 20.03%
Operating margin 10.25% 10.86% 8.36%
Net margin 6.61% 7.21% 4.53%
Free cash flow margin 5.77% 7.80% 5.14%
Return on equity 17.15% 14.79% 11.28%
Return on assets 4.89% 6.85% 4.29%
Return on invested capital 7.34% 8.05% 6.43%

Growth

Metric BALL PKG Packaging & Containers median
Revenue growth (TTM) 15.56% 10.35% 9.10%
EPS growth (last fiscal year) (74.62%) (3.92%) —
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 1.25 0.85 0.78
Current ratio 1.07 2.94 1.29
Net debt to EBITDA 2.83 1.91 2.65

Dividend

Metric BALL PKG Packaging & Containers median
Dividend yield 1.40% 3.01% 2.79%
Payout ratio 0.22 0.53 0.28

Size

Metric BALL PKG Packaging & Containers median
Market cap 15.00b 21.22b 3.71b

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