Financial Comparison: Graphic Packaging (NYSE:GPK) versus Smurfit Westrock (NYSE:SW)

Smurfit Westrock (NYSE:SW) and Graphic Packaging (NYSE:GPK) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Dividends

Smurfit Westrock pays an annual dividend of $1.21 per share and has a dividend yield of 2.5%. Graphic Packaging pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. Smurfit Westrock pays out 101.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Graphic Packaging pays out 18.1% of its earnings in the form of a dividend.

Volatility & Risk

Smurfit Westrock has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Graphic Packaging has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Profitability

This table compares Smurfit Westrock and Graphic Packaging’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smurfit Westrock	1.36%	7.13%	2.67%
Graphic Packaging	7.93%	30.74%	7.64%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Smurfit Westrock and Graphic Packaging, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smurfit Westrock	0	2	3	0	2.60
Graphic Packaging	1	2	6	0	2.56

Smurfit Westrock presently has a consensus price target of $57.80, suggesting a potential upside of 20.77%. Graphic Packaging has a consensus price target of $31.15, suggesting a potential upside of 7.93%. Given Smurfit Westrock’s stronger consensus rating and higher possible upside, analysts plainly believe Smurfit Westrock is more favorable than Graphic Packaging.

Insider and Institutional Ownership

83.4% of Smurfit Westrock shares are held by institutional investors. Comparatively, 99.7% of Graphic Packaging shares are held by institutional investors. 0.5% of Smurfit Westrock shares are held by company insiders. Comparatively, 1.2% of Graphic Packaging shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Smurfit Westrock and Graphic Packaging”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smurfit Westrock	$20.31 billion	1.23	-$22.40 million	$1.19	40.26
Graphic Packaging	$9.43 billion	0.92	$723.00 million	$2.21	13.07

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

Summary

Graphic Packaging beats Smurfit Westrock on 9 of the 16 factors compared between the two stocks.

About Smurfit Westrock

Smurfit Westrock Plc, together with its subsidiaries, manufactures, distributes, and sells containerboard, corrugated containers, and other paper-based packaging products in Ireland and internationally. The company produces containerboard that it converts into corrugated containers or sells to third parties, as well as produces other types of paper, such as consumer packaging board, sack paper, graphic paper, solid board and graphic board, and other paper-based packaging products, such as consumer packaging, solid board packaging, paper sacks, and other packaging products, including bag-in-box. It also produces linerboard and corrugated medium, paperboard, and non-packaging grades of paper, as well as converted products, such as folding cartons and corrugated boxes, and other products; recycled paper-based packaging products; and packaging machinery. The company primarily serves food and beverage, e-commerce, retail, consumer goods, industrial, and foodservice markets. Smurfit Westrock Plc was founded in 1934 and is headquartered in Dublin, Ireland.

About Graphic Packaging

Graphic Packaging Holding Company, together with its subsidiaries, designs, produces, and sells consumer packaging products to brands in food, beverage, foodservice, household, and other consumer products. It operates through three segments: Paperboard Manufacturing, Americas Paperboard Packaging, and Europe Paperboard Packaging. The company offers unbleached, bleached, and recycled paperboard to various paperboard packaging converters and brokers. It also provides paperboard packaging products for consumer packaged goods companies; and cups, lids, and food containers for foodservice companies and quick-service restaurants serving the food, beverage, and consumer product markets, including healthcare and beauty. The company also designs, manufactures, and installs specialized packaging machines. The company sells its products through sales offices, as well as through broker arrangements with third parties in the Americas, Europe, and the Asia Pacific. Graphic Packaging Holding Company was incorporated in 2007 and is headquartered in Atlanta, Georgia.