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

Packaging Corporation of America and Smurfit Westrock PLC are both Packaging & Containers companies. Smurfit Westrock PLC is the larger, with a market value of $24.1B against $21.2B — 1.1× the size. Packaging Corporation of America trades at the lower P/E: 30.7× against 48.9×. 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; Packaging Corporation of America yields more (3.01% vs 2.64%). Across the 23 metrics below, Packaging Corporation of America leads on 14 and Smurfit Westrock PLC on 9.

Valuation

Metric PKG SW Packaging & Containers median
P/E 30.68 48.85 15.79
P/S 2.20 0.78 0.88
P/B 4.50 1.35 1.60
Price to free cash flow 28.21 23.25 13.41
EV/EBITDA 13.63 8.97 9.04
EV/Sales 2.60 1.21 1.31
Earnings yield 3.26% 2.05% 5.04%
Free cash flow yield 3.54% 4.30% 6.34%

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% —
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 3.01% 2.64% 2.79%
Payout ratio 0.53 0.28 0.28

Size

Metric PKG SW Packaging & Containers median
Market cap 21.22b 24.05b 3.71b

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