Analyzing Transcontinental (OTCMKTS:TCLCF) and Myers Industries (NYSE:MYE)

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

Institutional and Insider Ownership

0.0% of Transcontinental shares are owned by institutional investors. Comparatively, 90.8% of Myers Industries shares are owned by institutional investors. 1.4% of Myers Industries shares are owned 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.

Profitability

This table compares Transcontinental and Myers 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
Myers Industries	6.01%	18.55%	9.52%

Valuation & Earnings

This table compares Transcontinental and Myers Industries’ 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	7.53
Myers Industries	$813.07 million	1.04	$48.87 million	$1.32	17.29

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

Dividends

Transcontinental pays an annual dividend of $0.63 per share and has a dividend yield of 6.2%. Myers Industries pays an annual dividend of $0.54 per share and has a dividend yield of 2.4%. Transcontinental pays out 46.6% of its earnings in the form of a dividend. Myers Industries pays out 40.9% 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for Transcontinental and Myers Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transcontinental	0	0	0	0	N/A
Myers Industries	0	0	1	0	3.00

Myers Industries has a consensus price target of $30.00, suggesting a potential upside of 31.46%. Given Myers Industries’ higher probable upside, analysts plainly believe Myers Industries is more favorable than Transcontinental.

Summary

Myers Industries beats Transcontinental on 10 of the 12 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 Myers Industries

Myers Industries, Inc. engages in distribution of tire service supplies in Ohio. It operates through two segments, The Material Handling and Distribution. The Material Handling segment offers pallets, small parts bins, bulk shipping containers, and OEM parts, as well as storage and organization, and custom plastic products; and injection molded, rotationally molded or blow molded products, consumer fuel containers and tanks for water, fuel, and waste handling. It serves industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational and marine vehicles, healthcare, appliance, bakery, electronics, textiles, consumer markets, and other markets under Akro-Mils, Jamco, Buckhorn, Ameri-Kart, Scepter, Elkhart Plastics, Trilogy Plastics, and Signature Systems brands directly to end-users, as well as through distributors. The Distribution segment engages in the distribution of tools, equipment, and supplies for tire, wheel, and under-vehicle service on passenger, heavy truck, and off-road vehicles; and manufacture and sale of tire repair materials and custom rubber products, as well as reflective highway marking tapes under the Myers Tire Supply, Myers Tire Supply International, Tuffy Manufacturing, Mohawk Rubber Sales, Patch Rubber Company, Elrick, Fleetline, MTS, Seymoure, Advance Traffic Markings, and MXP brands. This segment serves retail and truck tire dealers, commercial auto and truck fleets, auto dealers, general service and repair centers, tire re-treaders, truck stop operations, and government agencies. Myers Industries, Inc. was founded in 1933 and is headquartered in Akron, Ohio.