Winpak (WIPKF) & Its Rivals Critical Analysis

Winpak (OTCMKTS:WIPKF) is one of 70 publicly-traded companies in the “Containers & Packaging” industry, but how does it contrast to its peers? We will compare Winpak to related businesses based on the strength of its earnings, analyst recommendations, valuation, risk, profitability, institutional ownership and dividends.

Profitability

This table compares Winpak and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Winpak	N/A	N/A	N/A
Winpak Competitors	-28.76%	-31.82%	2.15%

Valuation & Earnings

This table compares Winpak and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Winpak	N/A	N/A	26.22
Winpak Competitors	$8.21 billion	$208.36 million	14.91

Winpak’s peers have higher revenue and earnings than Winpak. Winpak is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

21.0% of Winpak shares are held by institutional investors. Comparatively, 54.4% of shares of all “Containers & Packaging” companies are held by institutional investors. 13.5% of shares of all “Containers & Packaging” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Winpak pays an annual dividend of $0.11 per share and has a dividend yield of 0.4%. Winpak pays out 9.4% of its earnings in the form of a dividend. As a group, “Containers & Packaging” companies pay a dividend yield of 5.1% and pay out -109.2% of their earnings in the form of a dividend. Winpak lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a breakdown of current ratings for Winpak and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Winpak	0	2	0	0	2.00
Winpak Competitors	381	2318	3364	84	2.51

As a group, “Containers & Packaging” companies have a potential upside of 29.75%. Given Winpak’s peers stronger consensus rating and higher probable upside, analysts clearly believe Winpak has less favorable growth aspects than its peers.

Summary

Winpak peers beat Winpak on 10 of the 13 factors compared.

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.