Cascades (OTCMKTS:CADNF) & Sealed Air (NYSE:SEE) Financial Review

Cascades (OTCMKTS:CADNF) and Sealed Air (NYSE:SEE) are both consumer cyclical companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Insider & Institutional Ownership

21.8% of Cascades shares are held by institutional investors. Comparatively, 89.5% of Sealed Air shares are held by institutional investors. 0.4% of Sealed Air shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Cascades and Sealed Air’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cascades	N/A	N/A	N/A	($1.00)	-9.21
Sealed Air	$5.64 billion	0.90	$491.60 million	$2.68	13.10

Sealed Air has higher revenue and earnings than Cascades. Cascades is trading at a lower price-to-earnings ratio than Sealed Air, indicating that it is currently the more affordable of the two stocks.

Dividends

Cascades pays an annual dividend of $0.16 per share and has a dividend yield of 1.7%. Sealed Air pays an annual dividend of $0.80 per share and has a dividend yield of 2.3%. Cascades pays out -16.0% of its earnings in the form of a dividend. Sealed Air pays out 29.9% 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.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Cascades and Sealed Air, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cascades	0	0	0	0	N/A
Sealed Air	0	7	4	0	2.36

Cascades presently has a consensus target price of $16.30, indicating a potential upside of 76.98%. Sealed Air has a consensus target price of $44.64, indicating a potential upside of 27.13%. Given Cascades’ higher possible upside, research analysts clearly believe Cascades is more favorable than Sealed Air.

Profitability

This table compares Cascades and Sealed Air’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cascades	N/A	N/A	N/A
Sealed Air	7.04%	154.56%	7.52%

Summary

Sealed Air beats Cascades on 10 of the 12 factors compared between the two stocks.

About Cascades

Cascades Inc. produces, converts, and sells packaging and tissue products in Canada and the United States. The company operates through three segments: Containerboard, Specialty Products, and Tissue Papers. It offers various packaging solutions comprising trays and accessories, produce baskets and boxes, clamshells, produce boxes, egg packaging solutions, pizza and insulated boxes, bulk bins, cup carriers, food grade films, and customized containers for the food sector; protective packaging, including die-cut boxes, handling and shipping solutions, protective materials, large format boxes, and shipping trays; e-commerce packaging solutions, which include e-commerce boxes, custom mailer boxes, custom printing, packaging optimization products, and cutter for multi-depth boxes, as well as the solution for faster packing and shipping tests; and various retail packaging products. The company also provides hygiene and tissue solutions, such as bathroom tissues, paper towels, napkins, paper and hand towels, bathroom issues, dispensers, table and facial napkins, wipers, and household towels; cascades fluff and tuff products; and fiber-based materials, which include tissue paper jumbo rolls, containerboards, specialty papers, technology barrier solutions, structural components, and uncoated recycled paperboards. In addition, it is involved in the provision of recycling solutions, which include recycling services, brokering and trading of materials, secure shredding, recycling equipment, and graphic design and printing services. The company provides recycling solutions for municipal, industrial, commercial, and institutional sectors. Cascades Inc. was incorporated in 1964 and is headquartered in Kingsey Falls, Canada.

About Sealed Air

Sealed Air Corporation provides packaging solutions in the Americas, Europe, the Middle East, Africa, Asia, Australia, and NewZealand. It operates through two segments, Food and Protective. The Food segment offers integrated packaging materials and automation equipment solutions to provide food safety and shelf life extension, reduce food waste, automate processes, and optimize total cost for food processors in the fresh red meat, smoked and processed meats, poultry, seafood, plant-based, and dairy markets under the CRYOVAC, CRYOVAC Grip & Tear, CRYOVAC Darfresh, Simple Steps, and Optidure brands. This segment sells its solutions directly to customers through its sales, marketing, and customer service personnel. The Protective segment provides foam, inflatable, suspension and retention, temperature assurance packaging solutions to protect goods to e-commerce, consumer goods, pharmaceutical and medical devices, and industrial manufacturing markets under the SEALED AIR, BUBBLE WRAP, AUTOBAG, SEALED AIR, AUTOBAG, Instapak, Korrvu, Kevothermal, and TempGuard brands. This segment sells its solutions through supply distributors, as well as directly to fabricators, original equipment manufacturers, contract manufacturers, logistics partners, and e-commerce/fulfillment operations. Sealed Air Corporation was incorporated in 1960 and is headquartered in Charlotte, North Carolina.