Comparing Graphic Packaging (NYSE:GPK) & O-I Glass (NYSE:OI)

Graphic Packaging (NYSE:GPK) and O-I Glass (NYSE:OI) are both materials companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Volatility & Risk

Graphic Packaging has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, O-I Glass has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Valuation and Earnings

This table compares Graphic Packaging and O-I Glass”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Graphic Packaging	$8.62 billion	0.37	$444.00 million	$0.25	43.58
O-I Glass	$6.33 billion	0.12	-$129.00 million	($7.79)	-0.64

Graphic Packaging has higher revenue and earnings than O-I Glass. O-I Glass is trading at a lower price-to-earnings ratio than Graphic Packaging, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

99.7% of Graphic Packaging shares are held by institutional investors. Comparatively, 97.2% of O-I Glass shares are held by institutional investors. 1.5% of Graphic Packaging shares are held by company insiders. Comparatively, 1.0% of O-I Glass shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for Graphic Packaging and O-I Glass, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Graphic Packaging	3	8	1	0	1.83
O-I Glass	3	3	3	0	2.00

Graphic Packaging presently has a consensus price target of $11.01, indicating a potential upside of 1.07%. O-I Glass has a consensus price target of $8.81, indicating a potential upside of 77.49%. Given O-I Glass’ stronger consensus rating and higher possible upside, analysts clearly believe O-I Glass is more favorable than Graphic Packaging.

Dividends

Graphic Packaging pays an annual dividend of $0.44 per share and has a dividend yield of 4.0%. O-I Glass pays an annual dividend of $0.20 per share and has a dividend yield of 4.0%. Graphic Packaging pays out 176.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. O-I Glass pays out -2.6% of its earnings in the form of a dividend. Graphic Packaging has increased its dividend for 1 consecutive years. Graphic Packaging is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Graphic Packaging and O-I Glass’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Graphic Packaging	0.86%	6.78%	1.90%
O-I Glass	-18.89%	3.74%	0.43%

Summary

Graphic Packaging beats O-I Glass on 12 of the 17 factors compared between the two stocks.

About Graphic Packaging

Graphic Packaging Holding Company, through its subsidiary Graphic Packaging International, makes fiber-based packaging for food, beverages, foodservice and other consumer products. Its offerings include folding cartons, paper cups, foodservice containers and packaging designed to group or protect products. The company also produces paperboard used in many of its packaging products and provides design and packaging services to consumer-goods companies. Its operations serve customers in North America and international markets.

About O-I Glass

O-I Glass, Inc. manufactures glass containers for food and beverage brands. Its products include bottles and jars used for beer, wine, spirits, nonalcoholic beverages, and food, serving customers across consumer and industrial markets. The company traces its roots to the Owens Bottle Company, established in 1903 by glassmaking innovator Michael J. Owens. It later became Owens-Illinois and adopted the O-I Glass name in 2020. O-I Glass serves customers in the Americas and Europe, with operations and sales activities across multiple countries.