Analyzing Cascades (OTCMKTS:CADNF) and Silgan (NYSE:SLGN)

Silgan (NYSE:SLGNGet Free Report) and Cascades (OTCMKTS:CADNFGet Free Report) are both industrial products companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.

Profitability

This table compares Silgan and Cascades’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Silgan 5.44% 20.29% 4.76%
Cascades N/A N/A N/A

Valuation & Earnings

This table compares Silgan and Cascades’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Silgan $5.99 billion 0.81 $326.00 million $2.98 14.78
Cascades N/A N/A N/A ($1.00) -11.03

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Silgan and Cascades, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Silgan 1 1 6 0 2.63
Cascades 0 0 0 0 N/A

Silgan presently has a consensus price target of $52.75, suggesting a potential upside of 19.75%. Cascades has a consensus price target of $15.50, suggesting a potential upside of 40.53%. Given Cascades’ higher probable upside, analysts plainly believe Cascades is more favorable than Silgan.

Institutional & Insider Ownership

66.2% of Silgan shares are owned by institutional investors. Comparatively, 21.8% of Cascades shares are owned by institutional investors. 13.1% of Silgan shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Silgan pays an annual dividend of $0.72 per share and has a dividend yield of 1.6%. Cascades pays an annual dividend of $0.16 per share and has a dividend yield of 1.5%. Silgan pays out 24.2% of its earnings in the form of a dividend. Cascades pays out -16.0% 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. Silgan has increased its dividend for 20 consecutive years. Silgan is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Silgan beats Cascades on 11 of the 13 factors compared between the two stocks.

About Silgan

(Get Free Report)

Silgan Holdings Inc., together with its subsidiaries, manufactures and sells rigid packaging solutions for consumer goods products in the United States and internationally. It operates through three segments: Dispensing and Specialty Closures, Metal Containers, and Custom Containers. The Dispensing and Specialty Closures segment offers a range of metal and plastic closures, and dispensing systems for food, beverage, health care, garden, home, personal care, and beauty products, as well as capping/sealing equipment and detection systems. The Metal Containers segment manufactures and sells steel and aluminum containers for food products, such as pet food, vegetables, soups, proteins, tomato based products, fruits, and other miscellaneous food products, as well as general line metal containers primarily for chemicals. The Custom Containers segment manufactures and sells custom designed and stock plastic containers for use in personal care and health care; food and beverage; household and industrial chemical; pharmaceutical; pet food and care; agricultural; automotive; and marine chemical products. This segment also provides plastic thermoformed barrier and non-barrier bowls, and trays for food products, such as soups, other ready-to-eat meals, and pet food products; and plastic closures, caps, sifters, and fitments, as well as thermoformed tubs for food, household, and personal care products. The company markets its products primarily through direct sales force, as well as through a network of distributors, and an online shopping catalog. The company was founded in 1987 and is headquartered in Stamford, Connecticut.

About Cascades

(Get Free Report)

Cascades Inc. produces, converts, and sells packaging and tissue products in Canada and the United States. The company operates through three segments: Containerboard, Specialty Products, and Tissue Papers. It offers various packaging solutions comprising trays and accessories, produce baskets and boxes, clamshells, produce boxes, egg packaging solutions, pizza and insulated boxes, bulk bins, cup carriers, food grade films, and customized containers for the food sector; protective packaging, including die-cut boxes, handling and shipping solutions, protective materials, large format boxes, and shipping trays; e-commerce packaging solutions, which include e-commerce boxes, custom mailer boxes, custom printing, packaging optimization products, and cutter for multi-depth boxes, as well as the solution for faster packing and shipping tests; and various retail packaging products. The company also provides hygiene and tissue solutions, such as bathroom tissues, paper towels, napkins, paper and hand towels, bathroom issues, dispensers, table and facial napkins, wipers, and household towels; cascades fluff and tuff products; and fiber-based materials, which include tissue paper jumbo rolls, containerboards, specialty papers, technology barrier solutions, structural components, and uncoated recycled paperboards. In addition, it is involved in the provision of recycling solutions, which include recycling services, brokering and trading of materials, secure shredding, recycling equipment, and graphic design and printing services. The company provides recycling solutions for municipal, industrial, commercial, and institutional sectors. Cascades Inc. was incorporated in 1964 and is headquartered in Kingsey Falls, Canada.

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