Financial Review: TriMas (NASDAQ:TRS) versus Ardagh Metal Packaging (NYSE:AMBP)

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

Institutional & Insider Ownership

99.4% of TriMas shares are held by institutional investors. Comparatively, 16.9% of Ardagh Metal Packaging shares are held by institutional investors. 14.2% of TriMas shares are held by company insiders. Comparatively, 0.0% of Ardagh Metal Packaging shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

TriMas has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Ardagh Metal Packaging has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TriMas	3.83%	11.49%	5.72%
Ardagh Metal Packaging	0.13%	-76.86%	2.70%

Earnings and Valuation

This table compares TriMas and Ardagh Metal Packaging”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TriMas	$973.84 million	1.60	$24.25 million	$0.91	42.04
Ardagh Metal Packaging	$4.91 billion	0.46	-$3.00 million	($0.03)	-125.00

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for TriMas and Ardagh Metal Packaging, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TriMas	0	1	2	1	3.00
Ardagh Metal Packaging	1	5	1	0	2.00

TriMas currently has a consensus target price of $45.00, indicating a potential upside of 17.62%. Ardagh Metal Packaging has a consensus target price of $4.17, indicating a potential upside of 11.20%. Given TriMas’ stronger consensus rating and higher possible upside, analysts plainly believe TriMas is more favorable than Ardagh Metal Packaging.

Dividends

TriMas pays an annual dividend of $0.16 per share and has a dividend yield of 0.4%. Ardagh Metal Packaging pays an annual dividend of $0.40 per share and has a dividend yield of 10.7%. TriMas pays out 17.6% of its earnings in the form of a dividend. Ardagh Metal Packaging pays out -1,333.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Ardagh Metal Packaging is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

TriMas beats Ardagh Metal Packaging on 14 of the 17 factors compared between the two stocks.

About TriMas

TriMas Corporation engages in the design, development, manufacture, and sale of products for consumer products, aerospace, and industrial markets worldwide. The company operates through Packaging, Aerospace, and Specialty Products segments. The Packaging segment offers dispensing products, such as foaming and sanitizer pumps, lotion and hand soap pumps, beverage dispensers, perfume sprayers, and nasal and trigger sprayers; polymeric and steel caps and closures comprising food lids, flip-top and beverage closures, child resistance caps, drum and pail closures, and flexible spouts; polymeric jar products; integrated dispensers; bag-in-box products; and consumable vascular delivery and diagnostic test components under the Rieke, Taplast, Affaba & Ferrari, Intertech, Omega, and Rapak brands. The Aerospace segment provides fasteners, collars, blind bolts, rivets, ducting, and connectors for air management systems, and other highly-machined parts and components to original equipment manufacturers, supply chain distributors, and tier one suppliers, as well as maintenance, repair and overhaul (MRO)/aftermarket providers; and military and defense aerospace applications and platforms under the Monogram Aerospace Fasteners, Allfast Fastening Systems, Mac Fasteners, TFI Aerospace, RSA Engineered Products, and Martinic Engineering brands. The Specialty Products segment offers steel cylinders for use in the transportation, storage, and dispensing of compressed gases under the Norris Cylinder brand; natural gas powered wellhead engines, compressors, and replacement parts for oil and natural gas production, and other industrial and commercial markets under the Arrow brand; and spare parts for various industrial engines. It sells its products through a direct sales force, third-party agents, and distributors. TriMas Corporation was incorporated in 1986 and is headquartered in Bloomfield Hills, Michigan.

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.