AB SKF (OTCMKTS:SKFRY – Get Free Report) and Ardagh Metal Packaging (NYSE:AMBP – Get Free Report) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.
Dividends
AB SKF pays an annual dividend of $0.73 per share and has a dividend yield of 2.9%. Ardagh Metal Packaging pays an annual dividend of $0.40 per share and has a dividend yield of 10.9%. AB SKF pays out 64.6% of its earnings in the form of a dividend. Ardagh Metal Packaging pays out -1,333.3% 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. Ardagh Metal Packaging is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
0.1% of AB SKF shares are owned by institutional investors. Comparatively, 16.9% of Ardagh Metal Packaging shares are owned by institutional investors. 0.0% of Ardagh Metal Packaging shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AB SKF | $9.34 billion | 1.24 | $612.44 million | $1.13 | 22.59 |
| Ardagh Metal Packaging | $4.91 billion | 0.45 | -$3.00 million | ($0.03) | -122.50 |
AB SKF has higher revenue and earnings than Ardagh Metal Packaging. Ardagh Metal Packaging is trading at a lower price-to-earnings ratio than AB SKF, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for AB SKF and Ardagh Metal Packaging, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AB SKF | 0 | 2 | 0 | 0 | 2.00 |
| Ardagh Metal Packaging | 1 | 3 | 1 | 0 | 2.00 |
Ardagh Metal Packaging has a consensus price target of $4.32, indicating a potential upside of 17.55%. Given Ardagh Metal Packaging’s higher possible upside, analysts clearly believe Ardagh Metal Packaging is more favorable than AB SKF.
Profitability
This table compares AB SKF and Ardagh Metal Packaging’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AB SKF | 5.54% | 14.26% | 7.30% |
| Ardagh Metal Packaging | 0.13% | -76.86% | 2.70% |
Volatility & Risk
AB SKF has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Ardagh Metal Packaging has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.
Summary
AB SKF beats Ardagh Metal Packaging on 9 of the 15 factors compared between the two stocks.
About AB SKF
AB SKF (publ) designs, manufactures, and sells bearings and units, seals, lubrication systems, condition monitoring, and services worldwide. It operates in two segments, Industrial and Automotive. The company offers rolling, mounted and housings, super-precision, slewing, plain, magnetic, and thin section bearings; industrial and automotive seals; lubricants, manual lubrication tools, lubricators, automatic lubrication systems, and lubrication system components; maintenance products, such as hydraulic, mechanical, and alignment tools, as well as heaters; belts, pulleys, chains, sprockets, bushings and hubs, couplings, and bolts and tightening systems; condition monitoring systems; test and measuring equipment, such as waviness and roundness analyzers, noise and vibration testers, and grease test rigs, as well as calibration with traceability, machine training and support, and upgrades and refurbishment services; and vehicle aftermarket products. It also provides application engineering services consisting of technical consultancy, numerical simulation and design, and root cause analysis; asset management services, such as assessment and benchmarking, maintenance strategy review, spare parts and inventory management, and lubrication management; condition-based maintenance, including vibration analysis and diagnostics, thermography, lubrication analysis, and condition monitoring system installation; mechanical maintenance comprising mounting and dismounting, precision alignment, and balancing; remanufacturing and customization; and training solutions, which include instructor-led training, e-learning courses, and webinar recordings. The company serves the aerospace, agriculture, automotive, construction, food and beverage, general machinery, machine tools, marine, material handling, metals, mining, mineral processing, ocean energy, pulp and paper, railways, and wind industries. AB SKF (publ) was incorporated in 1907 and is headquartered in Gothenburg, Sweden.
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.
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