Critical Survey: CCL Industries (OTCMKTS:CCDBF) versus Nampak (OTCMKTS:NPKLY)

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

Insider and Institutional Ownership

0.0% of Nampak 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

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

Earnings & Valuation

This table compares Nampak and CCL Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nampak	N/A	N/A	N/A	$1.80	11.67
CCL Industries	N/A	N/A	N/A	$5.45	10.28

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

Dividends

Nampak pays an annual dividend of $0.11 per share and has a dividend yield of 0.5%. CCL Industries pays an annual dividend of $1.02 per share and has a dividend yield of 1.8%. Nampak pays out 5.9% 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.

Analyst Ratings

This is a summary of recent recommendations for Nampak and CCL Industries, as provided by MarketBeat.com.

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

CCL Industries has a consensus price target of $84.00, indicating a potential upside of 49.86%. Given CCL Industries’ stronger consensus rating and higher probable upside, analysts plainly believe CCL Industries is more favorable than Nampak.

Summary

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

About Nampak

Nampak Limited manufactures and sells metal, plastic, and paper packaging products in South Africa and rest of Africa. It offers HDPE and PET bottles and jars, plastic closures, and crates and drums for the fruit juice, dairy, carbonated soft drink, water, alcoholic beverage, bakery, agriculture, chemical, petroleum, personal care, and household markets. The company also provides aluminum beverage cans and ends for the alcoholic, carbonated soft drink, fruit juice, energy drink, vegetable juice, and ice tea markets; tinplate food cans for the canned food market; and aluminum and tinplate cans, including aerosols, monoblocs, and paint and shoe polish cans to the personal care, household goods, and industrial markets, as well as crowns for the beverage market. In addition, it offers beverage cartons for milk, fruit juice, water, and traditional beer; self-opening paper bags for the flour and sugar markets; and corrugated cases/boxes for the tobacco, poultry, and food and general commercial markets, as well as labels and folding cartons for the tobacco, food, and beverage markets. The company is headquartered in Sandton, South Africa.

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.