Analyzing Ardagh Group (ARD) and Owens-Illinois (OI)

Ardagh Group (NYSE: ARD) and Owens-Illinois (NYSE:OI) are both industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Profitability

This table compares Ardagh Group and Owens-Illinois’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ardagh Group 0.78% -31.99% 3.95%
Owens-Illinois 2.65% 53.60% 4.48%



Dividends

Ardagh Group pays an annual dividend of $0.56 per share and has a dividend yield of 2.9%. Owens-Illinois does not pay a dividend. Ardagh Group pays out 30.4% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations for Ardagh Group and Owens-Illinois, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ardagh Group 0 2 4 0 2.67
Owens-Illinois 1 8 2 0 2.09

Ardagh Group currently has a consensus price target of $24.10, suggesting a potential upside of 26.44%. Owens-Illinois has a consensus price target of $25.80, suggesting a potential upside of 20.00%. Given Ardagh Group’s stronger consensus rating and higher probable upside, analysts plainly believe Ardagh Group is more favorable than Owens-Illinois.

Earnings and Valuation

This table compares Ardagh Group and Owens-Illinois’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ardagh Group $8.63 billion 0.04 $61.03 million $1.84 10.36
Owens-Illinois $6.87 billion 0.51 $180.00 million $2.65 8.11

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

Insider and Institutional Ownership

91.2% of Ardagh Group shares are held by institutional investors. Comparatively, 95.2% of Owens-Illinois shares are held by institutional investors. 0.7% of Owens-Illinois shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Owens-Illinois beats Ardagh Group on 9 of the 15 factors compared between the two stocks.

About Ardagh Group

Ardagh Group S.A. manufactures and supplies rigid packaging solutions primarily for the food and beverage markets worldwide. The company operates in four segments: Metal Packaging Europe, Metal Packaging Americas, Glass Packaging Europe, and Glass Packaging North America. Its metal packaging products include aluminum and steel beverage cans; two-piece aluminum, two-piece tinplate, and three-piece tinplate food and specialty cans; and a range of can ends, including easy-open and peelable ends. The company also offers proprietary and non-proprietary glass containers for various end-use categories, primarily food and beverage. In addition, it is involved in glass engineering, and mold manufacturing and repair activities. The company was formerly known as Ardagh Finance Holdings S.A. and changed its name to Ardagh Group S.A. in February 2017. The company was incorporated in 2011 and is based in Luxembourg. Ardagh Group S.A. is a subsidiary of ARD Finance S.A.

About Owens-Illinois

Owens-Illinois, Inc., through its subsidiaries, manufactures and sells glass containers to food and beverage manufacturers primarily in Europe, North America, Latin America, and the Asia Pacific. It produces glass containers for alcoholic beverages, including beer, flavored malt beverages, spirits, and wine. The company is also involved in the production of glass packaging for various food items, soft drinks, teas, juices, and pharmaceuticals. It offers glass containers in a range of sizes, shapes, and colors. The company sells its products directly to customers under annual or multi-year supply agreements, as well as through distributors. Owens-Illinois, Inc. was founded in 1903 and is headquartered in Perrysburg, Ohio.

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