Financial Comparison: CCL Industries (OTCMKTS:CCDBF) versus Transcontinental (OTCMKTS:TCLCF)

Transcontinental (OTCMKTS:TCLCF) and CCL Industries (OTCMKTS:CCDBF) are both consumer cyclical companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Valuation and Earnings

This table compares Transcontinental and CCL Industries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transcontinental	N/A	N/A	N/A	$1.34	9.18
CCL Industries	N/A	N/A	N/A	$5.45	10.06

Transcontinental is trading at a lower price-to-earnings ratio than CCL Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Transcontinental and CCL Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transcontinental	0	0	0	0	0.00
CCL Industries	0	0	1	0	3.00

CCL Industries has a consensus target price of $84.00, indicating a potential upside of 53.26%. Given CCL Industries’ stronger consensus rating and higher possible upside, analysts clearly believe CCL Industries is more favorable than Transcontinental.

Insider & Institutional Ownership

0.0% of Transcontinental shares are held by institutional investors. Comparatively, 37.2% of CCL Industries shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Transcontinental and CCL Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transcontinental	N/A	N/A	N/A
CCL Industries	N/A	N/A	N/A

Dividends

Transcontinental pays an annual dividend of $0.63 per share and has a dividend yield of 5.1%. CCL Industries pays an annual dividend of $1.02 per share and has a dividend yield of 1.9%. Transcontinental pays out 46.6% of its earnings in the form of a dividend. CCL Industries pays out 18.6% 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.

Summary

CCL Industries beats Transcontinental on 7 of the 8 factors compared between the two stocks.

About Transcontinental

Transcontinental Inc. engages in the flexible packaging business in Canada, the United States, Latin America, the United Kingdom, Australia, and New Zealand. It operates through Packaging, Printing, and Media sectors. The Packaging sector engages in the extrusion, lamination, printing, and converting packaging solutions; and manufacturing and recycling flexible plastic, including rollstock, bags and pouches, coextruded films, shrink films and bags, and advanced coatings. This sector serves agriculture, beverage, cheese and dairy, coffee and tea, frozen, health and wellness, home and personal care, industrial, lawn and garden, meat and protein, pet food, snacks, confection and dairy foods, tobacco, music, and entertainment markets, as well as supermarkets. The Printing sector provides integrated services for retailers, such as premedia services, flyer and in-store marketing product printing, and door-to-door distribution, as well as print solutions for newspapers, magazines, 4-color books, and personalized and mass marketing products. The Media sector is involved in printing and digital publishing of educational and trade books, and specialized publications for professionals and newspapers in French and English. Transcontinental Inc. was founded in 1976 and is headquartered in Montreal, Canada.

About CCL Industries

CCL Industries Inc. manufactures and sells labels, consumer printable media products, technology-driven label solutions, polymer banknote substrates, and specialty films. It operates through CCL, Avery, Checkpoint, and Innovia segments. The CCL segment converts pressure sensitive and extruded film materials for a range of decorative, instructional, security, and functional applications for government institutions and global customers in consumer packaging, healthcare, chemicals, consumer durables, electronic device, and automotive markets. The Avery segment supplies labels, specialty converted media, and software solutions to enable short-run digital printing in businesses and homes alongside complementary products sold through distributors, mass-market stores, and e-commerce retailers. The Checkpoint segment engages in developing radio frequency and radio frequency identification-based technology systems for loss prevention and inventory management applications, including labeling and tagging solutions for the retail and apparel industries. The Innovia segment supplies biaxially oriented polypropylene films to customers in the pressure sensitive label materials, flexible packaging, and consumer packaged goods industries. The company operates in Canada, the United States, Puerto Rico, Mexico, Brazil, Chile, Argentina, Europe, Asia, Australia, Africa, and New Zealand. CCL Industries Inc. was founded in 1951 and is headquartered in Toronto, Canada.