Critical Review: Packaging Corporation of America (NYSE:PKG) and Millennium Group International (NASDAQ:MGIH)

Packaging Corporation of America (NYSE:PKG) and Millennium Group International (NASDAQ:MGIH) are both materials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Profitability

This table compares Packaging Corporation of America and Millennium Group International’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%
Millennium Group International	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and target prices for Packaging Corporation of America and Millennium Group International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Packaging Corporation of America	0	3	6	1	2.80
Millennium Group International	1	0	0	0	1.00

Packaging Corporation of America presently has a consensus price target of $264.57, indicating a potential upside of 7.15%. Given Packaging Corporation of America’s stronger consensus rating and higher possible upside, analysts plainly believe Packaging Corporation of America is more favorable than Millennium Group International.

Earnings & Valuation

This table compares Packaging Corporation of America and Millennium Group International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Packaging Corporation of America	$8.99 billion	2.45	$774.10 million	$7.70	32.07
Millennium Group International	$25.33 million	0.71	-$6.32 million	N/A	N/A

Packaging Corporation of America has higher revenue and earnings than Millennium Group International.

Institutional & Insider Ownership

89.8% of Packaging Corporation of America shares are held by institutional investors. Comparatively, 0.3% of Millennium Group International 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, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Packaging Corporation of America has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Millennium Group International has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Summary

Packaging Corporation of America beats Millennium Group International on 12 of the 13 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 Millennium Group International

Millennium Group International Holdings Limited, an investment holding company, provides paper-based packaging solutions in Mainland China, Hong Kong, Vietnam, rest of Southeast Asian countries, Australia, the United States, and internationally. The company offers paper packaging products, including cardboard boxes, gift boxes, displays, corrugated outer cartons, manuals, and user guides to footwear products, sportswear, cookware and kitchenware, smartphones, food and beverage, paper and packaging, non-food-and-beverage-consumables, logistics, e-commerce, and home electronics industries; and packaging solutions to various luxury products industries. It also provides packaging products supply chain management solutions, and board games and various board game accessories. The company was founded in 1978 and is headquartered in Kwun Tong, Hong Kong. Millennium Group International Holdings Limited operates as a subsidiary of YC 1926 (BVI) Limited.