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 $18.1B against $5.1B — 3.6× the size. International Paper Company grew revenue faster over the last twelve months: 12.2% against 3.62%. Sonoco Products Company has the higher net margin (−3.08% vs −14.3%) and the lower return on invested capital (1.97% vs 2.15%). Both pay a dividend; International Paper Company yields more (5.39% vs 4.16%). Across the 22 metrics below, Sonoco Products Company leads on 13 and International Paper Company on 9.

Valuation

Metric IP SON Packaging & Containers median
P/E n/m n/m 20.50
P/S 0.75 0.69 0.84
P/B 1.38 1.81 1.81
Price to free cash flow 63.00 12.58 13.39
EV/EBITDA 8.28 11.94 9.53
EV/Sales 1.04 1.18 1.39
Earnings yield (19.11%) (4.47%) 2.89%
Free cash flow yield 1.59% 7.95% 5.42%

Profitability

Metric IP SON Packaging & Containers median
Gross margin 29.80% 20.22% 20.09%
Operating margin 2.85% 2.74% 6.42%
Net margin (14.32%) (3.08%) 3.43%
Free cash flow margin 1.19% 5.52% 4.78%
Return on equity (22.73%) (7.41%) 2.28%
Return on assets (9.09%) (2.08%) 1.04%
Return on invested capital 2.15% 1.97% 4.57%

Growth

Metric IP SON Packaging & Containers median
Revenue growth (TTM) 12.19% 3.62% 4.05%
EPS growth (last fiscal year) (542.68%) 510.30% 0.69%
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 0.59 1.34 0.79
Current ratio 1.01 1.18 1.29
Net debt to EBITDA 2.50 2.22 2.59

Dividend

Metric IP SON Packaging & Containers median
Dividend yield 5.39% 4.16% 3.38%
Payout ratio — 0.43 0.60

Size

Metric IP SON Packaging & Containers median
Market cap 18.13b 5.08b 3.71b

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