International Paper Company (IP) vs Sonoco Products Company (SON)

International Paper Company and Sonoco Products Company are both Packaging & Containers companies. International Paper Company is the larger, with a market value of $18.4B against $4.9B — 3.7× the size. International Paper Company has negative trailing earnings, so its P/E is not meaningful; Sonoco Products Company trades at 8.0×. International Paper Company grew revenue faster over the last twelve months: 35.3% against 17.7%. Sonoco Products Company has the higher net margin (8.41% vs −14.2%) and the higher return on invested capital (9.36% vs 0.62%). Both pay a dividend; International Paper Company yields more (5.32% vs 3.56%). Across the 22 metrics below, Sonoco Products Company leads on 17 and International Paper Company on 5.

Valuation

Metric IP SON Packaging & Containers median
P/E n/m 7.96 15.79
P/S 0.87 0.67 0.88
P/B 1.45 1.38 1.60
Price to free cash flow 32.43 12.37 13.41
EV/EBITDA 9.42 5.32 9.04
EV/Sales 1.18 1.11 1.31
Earnings yield (18.62%) 12.56% 5.04%
Free cash flow yield 3.08% 8.08% 6.34%

Profitability

Metric IP SON Packaging & Containers median
Gross margin 29.77% 20.81% 20.03%
Operating margin 0.90% 13.87% 8.36%
Net margin (14.20%) 8.41% 4.53%
Free cash flow margin 2.68% 5.40% 5.14%
Return on equity (20.79%) 18.33% 11.28%
Return on assets (8.72%) 5.47% 4.29%
Return on invested capital 0.62% 9.36% 6.43%

Growth

Metric IP SON Packaging & Containers median
Revenue growth (TTM) 35.30% 17.73% 9.10%
EPS growth (last fiscal year) (542.68%) 510.30% —
Revenue growth, 5-year CAGR 6.12% 7.50% 5.66%
Net income growth, 5-year CAGR 0.00% 37.05% 0.00%

Health

Metric IP SON Packaging & Containers median
Debt to equity 0.57 0.97 0.78
Current ratio 1.10 0.99 1.29
Net debt to EBITDA 2.50 2.22 2.65

Dividend

Metric IP SON Packaging & Containers median
Dividend yield 5.32% 3.56% 2.79%
Payout ratio 0.46 0.41 0.28

Size

Metric IP SON Packaging & Containers median
Market cap 18.44b 4.94b 3.71b

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