Contrasting Ardagh Metal Packaging (NYSE:AMBP) and International Paper (NYSE:IP)

International Paper (NYSE:IP) and Ardagh Metal Packaging (NYSE:AMBP) are both materials companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.

Institutional & Insider Ownership

82.0% of International Paper shares are owned by institutional investors. Comparatively, 16.9% of Ardagh Metal Packaging shares are owned by institutional investors. 0.2% of International Paper shares are owned by company insiders. Comparatively, 0.0% of Ardagh Metal Packaging shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

International Paper has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Ardagh Metal Packaging has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Profitability

This table compares International Paper and Ardagh Metal Packaging’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Paper	-14.20%	-1.09%	-0.44%
Ardagh Metal Packaging	0.68%	-27.93%	3.09%

Dividends

International Paper pays an annual dividend of $1.85 per share and has a dividend yield of 5.4%. Ardagh Metal Packaging pays an annual dividend of $0.40 per share and has a dividend yield of 8.6%. International Paper pays out -28.4% of its earnings in the form of a dividend. Ardagh Metal Packaging pays out 666.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of current ratings for International Paper and Ardagh Metal Packaging, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Paper	1	3	10	0	2.64
Ardagh Metal Packaging	0	5	1	0	2.17

International Paper currently has a consensus target price of $46.90, indicating a potential upside of 37.44%. Ardagh Metal Packaging has a consensus target price of $4.83, indicating a potential upside of 3.61%. Given International Paper’s stronger consensus rating and higher possible upside, equities research analysts plainly believe International Paper is more favorable than Ardagh Metal Packaging.

Valuation & Earnings

This table compares International Paper and Ardagh Metal Packaging”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Paper	$23.63 billion	0.76	-$3.52 billion	($6.52)	-5.23
Ardagh Metal Packaging	$5.50 billion	0.51	$11.00 million	$0.06	77.75

Ardagh Metal Packaging has lower revenue, but higher earnings than International Paper. International Paper is trading at a lower price-to-earnings ratio than Ardagh Metal Packaging, indicating that it is currently the more affordable of the two stocks.

Summary

International Paper beats Ardagh Metal Packaging on 10 of the 16 factors compared between the two stocks.

About International Paper

International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others. It sells its products directly to end users and converters, as well as through agents, resellers, and distributors. The company was founded in 1898 and is headquartered in Memphis, Tennessee.

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.