Sealed Air (NYSE: SEE) and Celanese (NYSE:CE) are both industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.
Volatility & Risk
Sealed Air has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Celanese has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.
This is a summary of current recommendations and price targets for Sealed Air and Celanese, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sealed Air presently has a consensus target price of $50.18, suggesting a potential upside of 15.65%. Celanese has a consensus target price of $114.54, suggesting a potential upside of 6.25%. Given Sealed Air’s stronger consensus rating and higher probable upside, research analysts clearly believe Sealed Air is more favorable than Celanese.
Sealed Air pays an annual dividend of $0.64 per share and has a dividend yield of 1.5%. Celanese pays an annual dividend of $1.84 per share and has a dividend yield of 1.7%. Sealed Air pays out 35.4% of its earnings in the form of a dividend. Celanese pays out 24.5% 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. Sealed Air has raised its dividend for 2 consecutive years and Celanese has raised its dividend for 6 consecutive years. Celanese is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
98.6% of Sealed Air shares are held by institutional investors. Comparatively, 95.7% of Celanese shares are held by institutional investors. 0.6% of Sealed Air shares are held by company insiders. Comparatively, 0.4% of Celanese shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Sealed Air and Celanese’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sealed Air||$4.46 billion||1.63||$814.90 million||$1.81||23.97|
|Celanese||$6.14 billion||2.38||$843.00 million||$7.51||14.35|
Celanese has higher revenue and earnings than Sealed Air. Celanese is trading at a lower price-to-earnings ratio than Sealed Air, indicating that it is currently the more affordable of the two stocks.
This table compares Sealed Air and Celanese’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Celanese beats Sealed Air on 10 of the 17 factors compared between the two stocks.
About Sealed Air
Sealed Air Corporation provides food safety and security, and product protection solutions worldwide. The company operates through Food Care and Product Care segments. The Food Care segment offers integrated system solutions that enhance the management of contamination risk during the food and beverage production process, extend product shelf life through packaging technologies, and improve merchandising, ease-of-use, and back-of-house preparation processes to processors, retailers, and food service operators under the Cryovac Grip & Tear, Cryovac Darfresh, Cryovac Mirabella, Simple Steps, and Optidure brands. It also provides integrated system solutions that incorporate equipment systems, which are frequently integrated into customers' operations; and packaging equipment for loading, filling, and dispensing. In addition, this segment offers graphic design, printing, training, field quality assurance, and remote diagnostics services; flexible packaging materials for medical and drug delivery devices; specialty component films for ostomy and colostomy bags; and PVC free films for packing pharmaceutical solutions, as well as new venture businesses. The Product Care segment provides packaging solutions under the Bubble Wrap and AirCap, Cryovac, Shanklin FloWrap, Instapak, Jiffy, and Korrvu brands, as well as I-Pack systems and e-Cube systems. The company serves food and beverage processing, food service, retail, healthcare and industrial, and commercial and consumer applications. Sealed Air Corporation was founded in 1960 and is headquartered in Charlotte, North Carolina.
Celanese Corporation, a technology and specialty materials company, manufactures and sells value-added chemicals, thermoplastic polymers, and other chemical-based products worldwide. The company operates through Advanced Engineered Materials, Consumer Specialties, Industrial Specialties, and Acetyl Intermediates segments. The Advanced Engineered Materials segment develops, produces, and supplies specialty polymers for automotive and medical applications, as well as for use in industrial products and consumer electronics. The Consumer Specialties segment provides cellulose acetate tows and flakes for use in filter products applications; food protection ingredients, such as potassium sorbate and sorbic acid for food and beverage industry; and Sunett, a sweetener for use in various beverages, confections, and dairy products. The Industrial Specialties segment offers vinyl acetate-based emulsions for use in paints and coatings, adhesives, construction, glass fiber, textiles, and paper applications; and ethylene vinyl acetate resins and compounds, as well as low-density polyethylene resins for use in flexible packaging films, lamination film products, hot melt adhesives, automotive parts, and carpeting applications. The Acetyl Intermediates segment produces and sells acetyl products, including acetic acid, vinyl acetate monomers, acetic anhydride, and acetate esters that are used as starting materials for colorants, paints, adhesives, coatings, and pharmaceuticals; and organic solvents and intermediates for pharmaceutical, agricultural, and chemical products. Celanese Corporation was founded in 1918 and is headquartered in Irving, Texas.
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