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 $20.7B against $4.9B — 4.2× the size. Sonoco Products Company trades at the lower P/E: 7.9× against 30.6×. Sonoco Products Company grew revenue faster over the last twelve months: 17.7% against 10.4%. Sonoco Products Company has the higher net margin (8.41% vs 7.21%) and the higher return on invested capital (9.36% vs 8.05%). Both pay a dividend; Sonoco Products Company yields more (4.30% vs 2.33%). Across the 23 metrics below, Sonoco Products Company leads on 18 and Packaging Corporation of America on 5.

Valuation

Metric PKG SON Packaging & Containers median
P/E 30.57 7.91 17.11
P/S 2.19 0.66 0.87
P/B 4.49 1.38 1.66
Price to free cash flow 28.10 12.30 13.16
EV/EBITDA 13.59 5.30 9.21
EV/Sales 2.59 1.11 1.35
Earnings yield 3.27% 12.64% 4.96%
Free cash flow yield 3.56% 8.13% 6.15%

Profitability

Metric PKG SON Packaging & Containers median
Gross margin 20.11% 20.81% 20.03%
Operating margin 10.86% 13.87% 8.36%
Net margin 7.21% 8.41% 4.53%
Free cash flow margin 7.80% 5.40% 5.14%
Return on equity 14.79% 18.33% 11.28%
Return on assets 6.85% 5.47% 4.29%
Return on invested capital 8.05% 9.36% 6.43%

Growth

Metric PKG SON Packaging & Containers median
Revenue growth (TTM) 10.35% 17.73% 9.10%
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 0.97 0.78
Current ratio 2.94 0.99 1.29
Net debt to EBITDA 1.91 2.22 2.65

Dividend

Metric PKG SON Packaging & Containers median
Dividend yield 2.33% 4.30% 3.14%
Payout ratio 0.71 0.34 0.56

Size

Metric PKG SON Packaging & Containers median
Market cap 20.72b 4.91b 3.71b

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