Financial Comparison: Smurfit Kappa Group (OTCMKTS:SMFTF) versus CCL Industries (OTCMKTS:CCDBF)

Smurfit Kappa Group (OTCMKTS:SMFTF) and CCL Industries (OTCMKTS:CCDBF) are both consumer cyclical companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Dividends

Smurfit Kappa Group pays an annual dividend of $0.46 per share and has a dividend yield of 1.0%. CCL Industries pays an annual dividend of $1.02 per share and has a dividend yield of 1.8%. Smurfit Kappa Group pays out 38.8% of its earnings in the form of a dividend. CCL Industries pays out 18.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CCL Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

42.0% of Smurfit Kappa Group shares are held by institutional investors. Comparatively, 37.2% of CCL Industries shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Smurfit Kappa Group and CCL Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smurfit Kappa Group	N/A	N/A	N/A
CCL Industries	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Smurfit Kappa Group and CCL Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smurfit Kappa Group	0	0	0	0	0.00
CCL Industries	0	0	1	0	3.00

CCL Industries has a consensus target price of $84.00, indicating a potential upside of 50.46%. Given CCL Industries’ stronger consensus rating and higher possible upside, analysts plainly believe CCL Industries is more favorable than Smurfit Kappa Group.

Valuation and Earnings

This table compares Smurfit Kappa Group and CCL Industries”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smurfit Kappa Group	N/A	N/A	N/A	$1.19	38.02
CCL Industries	N/A	N/A	N/A	$5.45	10.24

CCL Industries is trading at a lower price-to-earnings ratio than Smurfit Kappa Group, indicating that it is currently the more affordable of the two stocks.

Summary

CCL Industries beats Smurfit Kappa Group on 6 of the 8 factors compared between the two stocks.

About Smurfit Kappa Group

Smurfit Kappa Group Plc, together with its subsidiaries, manufactures, distributes, and sells containerboard, corrugated containers, and other paper-based packaging products in Ireland, Germany, France, Mexico, rest of Europe, and other Americas. The company offers e-commerce, retail, consumer, industrial, bottle, protective, heavy-duty, hexacomb, and various punnet packaging products; composite cardboard tubes, bags, and sacks; and bag-in-box, a packaging system that comprises films, accessories, bags, taps, and boxes. It also provides point of sale displays; cardboards of social distancing; corrugated sheet boards, solid board sheets, folding carton sheet boards, sack Kraft papers, MG brown Kraft papers, preprint products, agro-papers, technical papers, BanaBag, and Catcher Board MB12; and various types of containerboards, such as kraftliners, testliners, and containerboard flutings. In addition, the company offers recycling solutions to cardboard and paper products; and supplies packaging machinery. It primarily serves consumer goods, industrial goods, and food and drink sectors. Smurfit Kappa Group Plc was founded in 1934 and is headquartered in Dublin, Ireland.

About CCL Industries

CCL Industries Inc. manufactures and sells labels, consumer printable media products, technology-driven label solutions, polymer banknote substrates, and specialty films. It operates through CCL, Avery, Checkpoint, and Innovia segments. The CCL segment converts pressure sensitive and extruded film materials for a range of decorative, instructional, security, and functional applications for government institutions and global customers in consumer packaging, healthcare, chemicals, consumer durables, electronic device, and automotive markets. The Avery segment supplies labels, specialty converted media, and software solutions to enable short-run digital printing in businesses and homes alongside complementary products sold through distributors, mass-market stores, and e-commerce retailers. The Checkpoint segment engages in developing radio frequency and radio frequency identification-based technology systems for loss prevention and inventory management applications, including labeling and tagging solutions for the retail and apparel industries. The Innovia segment supplies biaxially oriented polypropylene films to customers in the pressure sensitive label materials, flexible packaging, and consumer packaged goods industries. The company operates in Canada, the United States, Puerto Rico, Mexico, Brazil, Chile, Argentina, Europe, Asia, Australia, Africa, and New Zealand. CCL Industries Inc. was founded in 1951 and is headquartered in Toronto, Canada.