Critical Analysis: Vidrala (OTCMKTS:VDRFF) & Packaging Corporation of America (NYSE:PKG)

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

Institutional & Insider 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 hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Vidrala and Packaging Corporation of America, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vidrala	0	0	0	0	0.00
Packaging Corporation of America	0	3	6	1	2.80

Packaging Corporation of America has a consensus price target of $264.57, suggesting a potential upside of 11.39%. Given Packaging Corporation of America’s stronger consensus rating and higher possible upside, analysts clearly believe Packaging Corporation of America is more favorable than Vidrala.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vidrala	N/A	N/A	N/A	N/A	N/A
Packaging Corporation of America	$8.99 billion	2.35	$774.10 million	$7.70	30.85

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

Profitability

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

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

Summary

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

About Vidrala

Vidrala, S.A. manufactures and sells glass containers for food and beverage products in the United Kingdom and Ireland, Italy, Iberian Peninsula and rest of Europe, and Brazil. It provides glass bottles for oils and vinegar, beers, preserve food, sparkling wine and cider, spirits, wines, and juices, as well as for non-alcoholic beverages. The company also offers packaging services, such as logistic solutions and beverage filling. Vidrala, S.A. was incorporated in 1965 and is headquartered in Laudio/Llodio, Spain.

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.