International Paper Company (IP) vs Packaging Corporation of America (PKG)

International Paper Company 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 $18.4B — 1.2× the size. International Paper Company has negative trailing earnings, so its P/E is not meaningful; Packaging Corporation of America trades at 30.7×. International Paper Company grew revenue faster over the last twelve months: 35.3% against 10.4%. Packaging Corporation of America has the higher net margin (7.21% vs −14.2%) and the higher return on invested capital (8.05% vs 0.62%). Both pay a dividend; International Paper Company yields more (5.32% vs 3.01%). Across the 22 metrics below, Packaging Corporation of America leads on 14 and International Paper Company on 8.

Valuation

Metric IP PKG Packaging & Containers median
P/E n/m 30.68 15.79
P/S 0.87 2.20 0.88
P/B 1.45 4.50 1.60
Price to free cash flow 32.43 28.21 13.41
EV/EBITDA 9.42 13.63 9.04
EV/Sales 1.18 2.60 1.31
Earnings yield (18.62%) 3.26% 5.04%
Free cash flow yield 3.08% 3.54% 6.34%

Profitability

Metric IP PKG Packaging & Containers median
Gross margin 29.77% 20.11% 20.03%
Operating margin 0.90% 10.86% 8.36%
Net margin (14.20%) 7.21% 4.53%
Free cash flow margin 2.68% 7.80% 5.14%
Return on equity (20.79%) 14.79% 11.28%
Return on assets (8.72%) 6.85% 4.29%
Return on invested capital 0.62% 8.05% 6.43%

Growth

Metric IP PKG Packaging & Containers median
Revenue growth (TTM) 35.30% 10.35% 9.10%
EPS growth (last fiscal year) (542.68%) (3.92%) —
Revenue growth, 5-year CAGR 6.12% 6.19% 5.66%
Net income growth, 5-year CAGR 0.00% 10.95% 0.00%

Health

Metric IP PKG Packaging & Containers median
Debt to equity 0.57 0.85 0.78
Current ratio 1.10 2.94 1.29
Net debt to EBITDA 2.50 1.91 2.65

Dividend

Metric IP PKG Packaging & Containers median
Dividend yield 5.32% 3.01% 2.79%
Payout ratio 0.46 0.53 0.28

Size

Metric IP PKG Packaging & Containers median
Market cap 18.44b 21.22b 3.71b

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