Critical Analysis: Ardagh Metal Packaging (AMBP) versus Its Competitors

Ardagh Metal Packaging (NYSE:AMBP) is one of 20 publicly-traded companies in the “METAL PROC&FABR” industry, but how does it contrast to its competitors? We will compare Ardagh Metal Packaging to similar businesses based on the strength of its analyst recommendations, institutional ownership, earnings, profitability, valuation, risk and dividends.

Dividends

Ardagh Metal Packaging pays an annual dividend of $0.40 per share and has a dividend yield of 8.8%. Ardagh Metal Packaging pays out -1,000.0% of its earnings in the form of a dividend. As a group, “METAL PROC&FABR” companies pay a dividend yield of 1.6% and pay out 38.6% of their earnings in the form of a dividend. Ardagh Metal Packaging is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Volatility and Risk

Ardagh Metal Packaging has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Ardagh Metal Packaging’s competitors have a beta of 1.00, meaning that their average share price is 0% less volatile than the S&P 500.

Earnings and Valuation

This table compares Ardagh Metal Packaging and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ardagh Metal Packaging	$4.91 billion	-$3.00 million	-113.13
Ardagh Metal Packaging Competitors	$2.03 billion	$107.10 million	11.73

Ardagh Metal Packaging has higher revenue, but lower earnings than its competitors. Ardagh Metal Packaging is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Ardagh Metal Packaging and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ardagh Metal Packaging	0.08%	-112.58%	2.44%
Ardagh Metal Packaging Competitors	-10.55%	-7.24%	2.12%

Institutional and Insider Ownership

16.9% of Ardagh Metal Packaging shares are owned by institutional investors. Comparatively, 57.2% of shares of all “METAL PROC&FABR” companies are owned by institutional investors. 0.0% of Ardagh Metal Packaging shares are owned by company insiders. Comparatively, 12.0% of shares of all “METAL PROC&FABR” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for Ardagh Metal Packaging and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ardagh Metal Packaging	1	3	1	0	2.00
Ardagh Metal Packaging Competitors	113	445	438	1	2.33

Ardagh Metal Packaging presently has a consensus target price of $3.84, indicating a potential downside of 15.14%. As a group, “METAL PROC&FABR” companies have a potential upside of 11.45%. Given Ardagh Metal Packaging’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Ardagh Metal Packaging has less favorable growth aspects than its competitors.

Summary

Ardagh Metal Packaging competitors beat Ardagh Metal Packaging on 10 of the 15 factors compared.

About Ardagh Metal Packaging

Ardagh Metal Packaging S.A., together with its subsidiaries, supplies consumer metal beverage cans in Europe, the United States, and Brazil. Its products are used in various end-use categories, including beer, carbonated soft drinks, energy drinks, hard seltzers, juices, pre-mixed cocktails, teas, sparkling waters, and wine. The company serves beverage producers. Ardagh Metal Packaging S.A. is based in Luxembourg, Luxembourg. Ardagh Metal Packaging S.A. is a subsidiary of Ardagh Group S.A.