Packaging Corporation of America (PKG) vs Reynolds Consumer Products Inc. (REYN)

Packaging Corporation of America and Reynolds Consumer Products Inc. are both Packaging & Containers companies. Packaging Corporation of America is the larger, with a market value of $21.2B against $4.6B — 4.7× the size. Reynolds Consumer Products Inc. trades at the lower P/E: 13.2× against 30.7×. Packaging Corporation of America grew revenue faster over the last twelve months: 10.4% against 2.66%. Reynolds Consumer Products Inc. has the higher net margin (9.11% vs 7.21%) and the higher return on invested capital (8.84% vs 8.05%). Both pay a dividend; Reynolds Consumer Products Inc. yields more (3.21% vs 3.01%). Across the 23 metrics below, Reynolds Consumer Products Inc. leads on 17 and Packaging Corporation of America on 6.

Valuation

Metric PKG REYN Packaging & Containers median
P/E 30.68 13.21 15.79
P/S 2.20 1.21 0.88
P/B 4.50 1.98 1.60
Price to free cash flow 28.21 14.26 13.41
EV/EBITDA 13.63 9.04 9.04
EV/Sales 2.60 1.60 1.31
Earnings yield 3.26% 7.57% 5.04%
Free cash flow yield 3.54% 7.01% 6.34%

Profitability

Metric PKG REYN Packaging & Containers median
Gross margin 20.11% 25.12% 20.03%
Operating margin 10.86% 14.10% 8.36%
Net margin 7.21% 9.11% 4.53%
Free cash flow margin 7.80% 8.45% 5.14%
Return on equity 14.79% 15.48% 11.28%
Return on assets 6.85% 6.94% 4.29%
Return on invested capital 8.05% 8.84% 6.43%

Growth

Metric PKG REYN Packaging & Containers median
Revenue growth (TTM) 10.35% 2.66% 9.10%
EPS growth (last fiscal year) (3.92%) (14.37%) —
Revenue growth, 5-year CAGR 6.19% 2.66% 5.66%
Net income growth, 5-year CAGR 10.95% (3.68%) 0.00%

Health

Metric PKG REYN Packaging & Containers median
Debt to equity 0.85 0.66 0.78
Current ratio 2.94 1.80 1.29
Net debt to EBITDA 1.91 2.32 2.65

Dividend

Metric PKG REYN Packaging & Containers median
Dividend yield 3.01% 3.21% 2.79%
Payout ratio 0.53 0.81 0.28

Size

Metric PKG REYN Packaging & Containers median
Market cap 21.22b 4.55b 3.71b

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