Critical Contrast: Amcor (AMCR) versus Its Rivals

Amcor (NYSE:AMCRGet Rating) is one of 31 publicly-traded companies in the “Miscellaneous manufacturing industries” industry, but how does it contrast to its peers? We will compare Amcor to similar businesses based on the strength of its earnings, valuation, profitability, dividends, institutional ownership, analyst recommendations and risk.

Profitability

This table compares Amcor and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amcor 5.53% 27.37% 7.06%
Amcor Competitors -119.14% -15.22% -10.50%

Insider & Institutional Ownership

47.8% of Amcor shares are held by institutional investors. Comparatively, 38.3% of shares of all “Miscellaneous manufacturing industries” companies are held by institutional investors. 0.3% of Amcor shares are held by insiders. Comparatively, 12.3% of shares of all “Miscellaneous manufacturing industries” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Amcor pays an annual dividend of $0.48 per share and has a dividend yield of 4.1%. Amcor pays out 90.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Miscellaneous manufacturing industries” companies pay a dividend yield of 2.8% and pay out 52.7% of their earnings in the form of a dividend. Amcor has increased its dividend for 39 consecutive years.

Earnings & Valuation

This table compares Amcor and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Amcor $14.54 billion $805.00 million 22.25
Amcor Competitors $1.60 billion $104.56 million 21.45

Amcor has higher revenue and earnings than its peers. Amcor is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Amcor and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amcor 2 3 1 0 1.83
Amcor Competitors 49 160 383 6 2.58

Amcor currently has a consensus price target of $12.15, suggesting a potential upside of 3.05%. As a group, “Miscellaneous manufacturing industries” companies have a potential upside of 46.12%. Given Amcor’s peers stronger consensus rating and higher possible upside, analysts clearly believe Amcor has less favorable growth aspects than its peers.

Risk and Volatility

Amcor has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Amcor’s peers have a beta of -0.53, suggesting that their average share price is 153% less volatile than the S&P 500.

Summary

Amcor beats its peers on 9 of the 15 factors compared.

About Amcor

(Get Rating)

Amcor plc develops, produces, and sells packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions. The company operates through two segments, Flexibles and Rigid Packaging. The Flexibles segment provides flexible and film packaging products in the food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries. The Rigid Packaging segment offers rigid containers for a range of beverage and food products, including carbonated soft drinks, water, juices, sports drinks, milk-based beverages, spirits and beer, sauces, dressings, spreads, and personal care items; and plastic caps for various applications. The company sells its products primarily through its direct sales force. Amcor plc was incorporated in 2018 and is headquartered in Z├╝rich, Switzerland.

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