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 ($23.3B and $22.2B). Packaging Corporation of America trades at the lower P/E: 30.4× against 49.6×. Packaging Corporation of America grew revenue faster over the last twelve months: 12.0% against 1.11%. Packaging Corporation of America has the higher net margin (7.37% vs 1.50%) and the lower return on invested capital (0.00% vs 2.87%). Both pay a dividend; Smurfit Westrock PLC yields more (4.03% vs 2.22%). Across the 23 metrics below, Smurfit Westrock PLC leads on 14 and Packaging Corporation of America on 9.

Valuation

Metric PKG SW Packaging & Containers median
P/E 30.43 49.65 20.50
P/S 2.25 0.75 0.84
P/B 4.75 1.30 1.81
Price to free cash flow 29.74 26.43 13.39
EV/EBITDA 14.26 8.73 9.53
EV/Sales 2.64 1.17 1.39
Earnings yield 3.29% 2.01% 2.89%
Free cash flow yield 3.36% 3.78% 5.42%

Profitability

Metric PKG SW Packaging & Containers median
Gross margin 20.53% 17.43% 20.09%
Operating margin 11.16% 4.57% 6.42%
Net margin 7.37% 1.50% 3.43%
Free cash flow margin 0.00% 2.82% 4.78%
Return on equity 0.00% 2.59% 2.28%
Return on assets 0.00% 1.04% 1.04%
Return on invested capital 0.00% 2.87% 4.57%

Growth

Metric PKG SW Packaging & Containers median
Revenue growth (TTM) 11.98% 1.11% 4.05%
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 0.79
Current ratio 2.94 1.48 1.29
Net debt to EBITDA 1.91 3.02 2.59

Dividend

Metric PKG SW Packaging & Containers median
Dividend yield 2.22% 4.03% 3.38%
Payout ratio 0.68 2.02 0.60

Size

Metric PKG SW Packaging & Containers median
Market cap 22.17b 23.27b 3.71b

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