CCL Industries (OTCMKTS:CCDBF) & Winpak (OTCMKTS:WIPKF) Critical Analysis

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

Dividends

CCL Industries pays an annual dividend of $1.02 per share and has a dividend yield of 2.0%. Winpak pays an annual dividend of $0.11 per share and has a dividend yield of 0.3%. CCL Industries pays out 18.6% of its earnings in the form of a dividend. Winpak pays out 9.4% 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CCL Industries	N/A	N/A	N/A	$5.45	9.49
Winpak	N/A	N/A	N/A	$1.17	28.93

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for CCL Industries and Winpak, as reported by MarketBeat.com.

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

CCL Industries currently has a consensus target price of $84.00, indicating a potential upside of 62.48%. Given CCL Industries’ stronger consensus rating and higher probable upside, research analysts clearly believe CCL Industries is more favorable than Winpak.

Profitability

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

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

Institutional & Insider Ownership

37.2% of CCL Industries shares are owned by institutional investors. Comparatively, 21.0% of Winpak shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

CCL Industries beats Winpak on 6 of the 8 factors compared between the two stocks.

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.

About Winpak

Winpak Ltd. manufactures and distributes packaging materials and related packaging machines in the United States, Canada, and Mexico. The company operates is Flexible Packaging, Rigid Packaging and Flexible Lidding, and Packaging Machinery segments. The Flexible Packaging segment provides modified atmosphere packaging products for fresh and processed meats, poultry, cheese, medical device packaging, high-performance pouch, and high-barrier films for converting applications; specialty films, including barrier and non-barrier films converting applications, such as printing, laminating and bag making, as well as shrink bags; and biaxially oriented nylon films for food packaging and industrial applications. The Rigid Packaging and Flexible Lidding segment offers portion control and single-serve containers, as well as plastic sheet, custom, and retort trays; die-cut, daisy chain, and rollstock formats for food, dairy, beverage, pet food, industrial, and healthcare applications; and specialized printed packaging solutions for the pharmaceutical, healthcare, nutraceutical, cosmetic, and personal care markets. The Packaging Machinery segment provides horizontal fill/seal machines for preformed containers and vertical form/fill/seal pouch machines for pumpable liquid and semi-liquid, as well as various dry products. The company was incorporated in 1975 and is based in Winnipeg, Canada. Winpak Ltd. is a subsidiary of Wihuri International Oy.