TriMas (TRS) vs. Sonoco Products (SON) Critical Comparison

TriMas (NASDAQ: TRS) and Sonoco Products (NYSE:SON) are both industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.

Valuation & Earnings

This table compares TriMas and Sonoco Products’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TriMas $794.02 million 1.54 -$39.80 million ($0.72) -37.22
Sonoco Products $4.78 billion 1.12 $286.43 million $2.72 19.81

Sonoco Products has higher revenue and earnings than TriMas. TriMas is trading at a lower price-to-earnings ratio than Sonoco Products, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

97.7% of TriMas shares are held by institutional investors. Comparatively, 72.0% of Sonoco Products shares are held by institutional investors. 1.4% of TriMas shares are held by insiders. Comparatively, 1.9% of Sonoco Products shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

TriMas has a beta of 2.06, suggesting that its share price is 106% more volatile than the S&P 500. Comparatively, Sonoco Products has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Profitability

This table compares TriMas and Sonoco Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TriMas -4.01% 12.18% 6.03%
Sonoco Products 5.63% 16.40% 6.38%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for TriMas and Sonoco Products, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TriMas 0 3 1 0 2.25
Sonoco Products 0 5 2 0 2.29

TriMas presently has a consensus price target of $25.25, suggesting a potential downside of 5.78%. Sonoco Products has a consensus price target of $53.00, suggesting a potential downside of 1.65%. Given Sonoco Products’ stronger consensus rating and higher probable upside, analysts clearly believe Sonoco Products is more favorable than TriMas.

Dividends

Sonoco Products pays an annual dividend of $1.56 per share and has a dividend yield of 2.9%. TriMas does not pay a dividend. Sonoco Products pays out 57.4% of its earnings in the form of a dividend. Sonoco Products has increased its dividend for 36 consecutive years.

Summary

Sonoco Products beats TriMas on 13 of the 17 factors compared between the two stocks.

TriMas Company Profile

TriMas Corporation is a designer, manufacturer and distributor of engineered products for commercial, industrial and consumer markets. The Company operates through four segments: Packaging, Aerospace, Energy and Engineered Components. The Packaging segment is a designer, manufacturer and distributor of engineered closure and dispensing systems for a range of end markets, including steel and plastic industrial, and consumer packaging applications. The Aerospace segment is a designer and manufacturer of a range of products for use in the aerospace industry. The Energy segment is a manufacturer and distributor of metallic and non-metallic gaskets, bolts, industrial fasteners and specialty products for the petroleum refining, petrochemical, oil field and industrial markets. The Engineered Components segment is a designer, manufacturer and distributor of high-pressure and acetylene cylinders for the transportation, storage and dispensing of compressed gases.

Sonoco Products Company Profile

Sonoco Products Company is engaged in manufacturing of industrial and consumer packaging products, and providing packaging services. The Company operates in four segments: Consumer Packaging, Paper and Industrial Converted Products, Display and Packaging, and Protective Solutions. Its Consumer Packaging segment’s products and services include round composite cans, aluminum, steel and peelable membrane easy-open closures for composite and metal cans; plastic bottles, cups and trays, and printed flexible packaging and global brand management. The Display and Packaging segment’s products and services include point-of-purchase displays; fulfilment; supply chain management, and paperboard specialties. Its Paper and Industrial Converted Products segment provides the raw material for its fiber-based packaging. The Protective Solutions segment’s products and services include custom-engineered and expanded foam protective packaging and components, and temperature-assured packaging.

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