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AptarGroup (ATR) versus Myers Industries (NYSE:MYE) Critical Review

Myers Industries (NYSE: MYE) and AptarGroup (NYSE:ATR) are both industrial products companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitabiliy, institutional ownership, dividends and valuation. Dividends

Myers Industries pays an annual dividend of £0.54 per share and has a dividend yield of 3.4%. AptarGroup pays an annual dividend of £1.28 per share and has a dividend yield of 1.5%. Myers Industries pays out 415.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

AptarGroup pays out 37.5% of its earnings in the form of a dividend. Myers Industries has raised its dividend for 7 consecutive years and AptarGroup has raised its dividend for 4 consecutive years. Myers Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility Myers Industries has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500. Comparatively, AptarGroup has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Insider & Institutional Ownership

84.1% of Myers Industries shares are held by institutional investors. Comparatively, 90.0% of AptarGroup shares are held by institutional investors.

0.8% of Myers Industries shares are held by company insiders. Comparatively, 5.3% of AptarGroup shares are held by company insiders.

Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term. Profitability This table compares Myers Industries and AptarGroup’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Myers Industries 0.74% 10.71% 2.67%
AptarGroup 9.36% 16.91% 8.08%

Earnings & Valuation

This table compares Myers Industries and AptarGroup’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Myers Industries £546.75 million 0.89 £53.00 million £0.13 123.46
AptarGroup £2.35 billion 2.21 £463.27 million £3.41 24.26

AptarGroup has higher revenue and earnings than Myers Industries. AptarGroup is trading at a lower price-to-earnings ratio than Myers Industries, indicating that it is currently the more affordable of the two stocks. Analyst Ratings

This is a summary of current ratings and recommmendations for Myers Industries and AptarGroup, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Myers Industries 1 0 1 0 2.00
AptarGroup 2 5 1 0 1.88

Myers Industries presently has a consensus price target of £13.00, indicating a potential downside of 19.00%. AptarGroup has a consensus price target of £81.83, indicating a potential downside of 1.10%. Given AptarGroup’s higher possible upside, analysts plainly believe AptarGroup is more favorable than Myers Industries.

Summary AptarGroup beats Myers Industries on 11 of the 16 factors compared between the two stocks. About Myers Industries

Myers Industries logoMyers Industries, Inc. is an international manufacturing and distribution company. The Company operates through two segments: Material Handling and Distribution. As of December 31, 2016, the Company operated 15 manufacturing facilities, 20 sales offices, four distribution centers and three distribution branches located throughout North, Central and South America.

As of December 31, 2016, the Company had approximately 15,000 manufactured products and over 13,500 distributed products. The Material Handling segment designs, manufactures and markets a range of plastic and metal products. The Distribution Segment is engaged in the distribution of tools, equipment and supplies used for tire, wheel and under vehicle service on passenger, heavy truck and off-road vehicles, and the manufacturing of tire repair materials and custom rubber products.

The product line includes categories, such as tire valves and accessories, and lifts and alignment equipment. About AptarGroup AptarGroup logoAptarGroup, Inc. is a provider of a range of packaging, dispensing and sealing solutions, primarily for the beauty, personal care, homecare, prescription drug, consumer healthcare, injectables, food and beverage markets.

The Company has manufacturing facilities located throughout the world, including North America, Europe, Asia and South America. The Company operates through three segments: Beauty + Home, Pharma and Food + Beverage. It offers various dispensing and sealing solutions.

Its primary products are dispensing pumps, closures, aerosol valves and elastomeric primary packaging components. Its elastomeric components also include pre filled syringe components, such as plungers, needle shields, tip caps and cartridges, as well as dropper bulbs and syringe plungers. Its Beauty + Home segment primarily sells pumps, closures, aerosol valves, accessories and sealing solutions to the personal care and home care markets, and pumps and decorative components to the beauty market.

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References

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