Reynolds Consumer Products Inc. (REYN) vs Sonoco Products Company (SON)

Reynolds Consumer Products Inc. and Sonoco Products Company are both Packaging & Containers companies. Reynolds Consumer Products Inc. and Sonoco Products Company are of similar size ($4.9B and $4.6B). Sonoco Products Company trades at the lower P/E: 8.0× against 13.2×. Sonoco Products Company grew revenue faster over the last twelve months: 17.7% against 2.66%. Reynolds Consumer Products Inc. has the higher net margin (9.11% vs 8.41%) and the lower return on invested capital (8.84% vs 9.36%). Both pay a dividend; Sonoco Products Company yields more (3.56% vs 3.21%). Across the 23 metrics below, Sonoco Products Company leads on 16 and Reynolds Consumer Products Inc. on 7.

Valuation

Metric REYN SON Packaging & Containers median
P/E 13.21 7.96 15.79
P/S 1.21 0.67 0.88
P/B 1.98 1.38 1.60
Price to free cash flow 14.26 12.37 13.41
EV/EBITDA 9.04 5.32 9.04
EV/Sales 1.60 1.11 1.31
Earnings yield 7.57% 12.56% 5.04%
Free cash flow yield 7.01% 8.08% 6.34%

Profitability

Metric REYN SON Packaging & Containers median
Gross margin 25.12% 20.81% 20.03%
Operating margin 14.10% 13.87% 8.36%
Net margin 9.11% 8.41% 4.53%
Free cash flow margin 8.45% 5.40% 5.14%
Return on equity 15.48% 18.33% 11.28%
Return on assets 6.94% 5.47% 4.29%
Return on invested capital 8.84% 9.36% 6.43%

Growth

Metric REYN SON Packaging & Containers median
Revenue growth (TTM) 2.66% 17.73% 9.10%
EPS growth (last fiscal year) (14.37%) 510.30% —
Revenue growth, 5-year CAGR 2.66% 7.50% 5.66%
Net income growth, 5-year CAGR (3.68%) 37.05% 0.00%

Health

Metric REYN SON Packaging & Containers median
Debt to equity 0.66 0.97 0.78
Current ratio 1.80 0.99 1.29
Net debt to EBITDA 2.32 2.22 2.65

Dividend

Metric REYN SON Packaging & Containers median
Dividend yield 3.21% 3.56% 2.79%
Payout ratio 0.81 0.41 0.28

Size

Metric REYN SON Packaging & Containers median
Market cap 4.55b 4.94b 3.71b

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