Head to Head Contrast: Orora (OTCMKTS:ORRAF) versus Packaging Corporation of America (NYSE:PKG)

Packaging Corporation of America (NYSE:PKG) and Orora (OTCMKTS:ORRAF) are both materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.

Insider & Institutional Ownership

89.8% of Packaging Corporation of America shares are held by institutional investors. 1.6% of Packaging Corporation of America shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Packaging Corporation of America and Orora, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Packaging Corporation of America	0	4	5	1	2.70
Orora	0	1	0	0	2.00

Packaging Corporation of America currently has a consensus price target of $264.57, indicating a potential upside of 4.56%. Orora has a consensus price target of $2.10, indicating a potential upside of 110.00%. Given Orora’s higher probable upside, analysts clearly believe Orora is more favorable than Packaging Corporation of America.

Profitability

This table compares Packaging Corporation of America and Orora’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Packaging Corporation of America	7.25%	18.94%	8.10%
Orora	N/A	N/A	N/A

Valuation and Earnings

This table compares Packaging Corporation of America and Orora”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Packaging Corporation of America	$9.53 billion	2.36	$774.10 million	$7.70	32.86
Orora	N/A	N/A	N/A	N/A	N/A

Packaging Corporation of America has higher revenue and earnings than Orora.

Summary

Packaging Corporation of America beats Orora on 9 of the 10 factors compared between the two stocks.

About Packaging Corporation of America

Packaging Corporation of America engages in the production of container products. It operates through the following segments: Packaging, Paper, and Corporate and Other. The Packaging segment offers a variety of corrugated packaging products, such as conventional shipping containers. The Paper segment manufactures and sells a range of papers, including communication-based papers, and pressure sensitive papers. The Corporate and Other segment focuses on transportation assets, such as rail cars, and trucks. The company was founded in 1959 and is headquartered in Lake Forest, IL.

About Orora

Orora Limited designs, manufactures, and supplies packaging products and services to the grocery, fast moving consumer goods, and industrial markets in Australia, New Zealand, the United States, and internationally. The company operates through Orora Australasia and Orora North America segments. It also provides glass bottles, aluminum cans, tabs, and ends, closures and caps, boxes and cartons, point-of-purchase displays, packaging equipment, rigid and flexible packaging, and general packaging materials and supplies. In addition, the company purchases, warehouses, sells, and delivers a range of packaging and related materials; sells equipment; manufactures corrugated sheets and boxes; and provides point of purchase retail display solutions and other visual communication services. Further, the company offers printing and signage, research and technology, product sourcing, automation and engineering, design, kitting and fulfilment, logistics, and digital technology services. The company was incorporated in 1949 and is headquartered in Hawthorn, Australia.