Packaging Corporation of America (PKG) vs Smurfit Westrock PLC (SW)

Packaging Corporation of America and Smurfit Westrock PLC are both Packaging & Containers companies. Packaging Corporation of America and Smurfit Westrock PLC are of similar size ($21.6B and $20.7B). Packaging Corporation of America trades at the lower P/E: 30.6× against 43.3×. Packaging Corporation of America grew revenue faster over the last twelve months: 10.4% against 1.69%. Packaging Corporation of America has the higher net margin (7.21% vs 1.59%) and the higher return on invested capital (8.05% vs 2.93%). Both pay a dividend; Smurfit Westrock PLC yields more (4.34% vs 2.33%). Across the 23 metrics below, Packaging Corporation of America leads on 13 and Smurfit Westrock PLC on 10.

Valuation

Metric PKG SW Packaging & Containers median
P/E 30.57 43.33 17.11
P/S 2.19 0.69 0.87
P/B 4.49 1.19 1.66
Price to free cash flow 28.10 20.62 13.16
EV/EBITDA 13.59 8.31 9.21
EV/Sales 2.59 1.12 1.35
Earnings yield 3.27% 2.31% 4.96%
Free cash flow yield 3.56% 4.85% 6.15%

Profitability

Metric PKG SW Packaging & Containers median
Gross margin 20.11% 17.93% 20.03%
Operating margin 10.86% 4.71% 8.36%
Net margin 7.21% 1.59% 4.53%
Free cash flow margin 7.80% 3.34% 5.14%
Return on equity 14.79% 2.73% 11.28%
Return on assets 6.85% 1.09% 4.29%
Return on invested capital 8.05% 2.93% 6.43%

Growth

Metric PKG SW Packaging & Containers median
Revenue growth (TTM) 10.35% 1.69% 9.10%
EPS growth (last fiscal year) (3.92%) 62.20% 0.69%
Revenue growth, 5-year CAGR 6.19% 7.96% 5.66%
Net income growth, 5-year CAGR 10.95% (5.84%) 0.00%

Health

Metric PKG SW Packaging & Containers median
Debt to equity 0.85 0.78 0.78
Current ratio 2.94 1.45 1.29
Net debt to EBITDA 1.91 3.02 2.65

Dividend

Metric PKG SW Packaging & Containers median
Dividend yield 2.33% 4.34% 3.14%
Payout ratio 0.71 1.90 0.56

Size

Metric PKG SW Packaging & Containers median
Market cap 20.72b 21.56b 3.71b

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