Packaging Corporation of America (PKG) vs Sonoco Products Company (SON)

Packaging Corporation of America and Sonoco Products Company are both Packaging & Containers companies. Packaging Corporation of America is the larger, with a market value of $22.2B against $5.1B — 4.4× the size. Sonoco Products Company has negative trailing earnings, so its P/E is not meaningful; Packaging Corporation of America trades at 30.4×. Packaging Corporation of America grew revenue faster over the last twelve months: 12.0% against 3.62%. Packaging Corporation of America has the higher net margin (7.37% vs −3.08%) and the lower return on invested capital (0.00% vs 1.97%). Both pay a dividend; Sonoco Products Company yields more (4.16% vs 2.22%). Across the 22 metrics below, Sonoco Products Company leads on 12 and Packaging Corporation of America on 10.

Valuation

Metric PKG SON Packaging & Containers median
P/E 30.43 n/m 20.50
P/S 2.25 0.69 0.84
P/B 4.75 1.81 1.81
Price to free cash flow 29.74 12.58 13.39
EV/EBITDA 14.26 11.94 9.53
EV/Sales 2.64 1.18 1.39
Earnings yield 3.29% (4.47%) 2.89%
Free cash flow yield 3.36% 7.95% 5.42%

Profitability

Metric PKG SON Packaging & Containers median
Gross margin 20.53% 20.22% 20.09%
Operating margin 11.16% 2.74% 6.42%
Net margin 7.37% (3.08%) 3.43%
Free cash flow margin 0.00% 5.52% 4.78%
Return on equity 0.00% (7.41%) 2.28%
Return on assets 0.00% (2.08%) 1.04%
Return on invested capital 0.00% 1.97% 4.57%

Growth

Metric PKG SON Packaging & Containers median
Revenue growth (TTM) 11.98% 3.62% 4.05%
EPS growth (last fiscal year) (3.92%) 510.30% 0.69%
Revenue growth, 5-year CAGR 6.19% 7.50% 5.66%
Net income growth, 5-year CAGR 10.95% 37.05% 0.00%

Health

Metric PKG SON Packaging & Containers median
Debt to equity 0.85 1.34 0.79
Current ratio 2.94 1.18 1.29
Net debt to EBITDA 1.91 2.22 2.59

Dividend

Metric PKG SON Packaging & Containers median
Dividend yield 2.22% 4.16% 3.38%
Payout ratio 0.68 0.43 0.60

Size

Metric PKG SON Packaging & Containers median
Market cap 22.17b 5.08b 3.71b

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