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The shares of Ball Corporation (NYSE: BLL) increased by more than 0.05% this year and have recently increased by 0.29% or $ 0.11 to $ 37.87 . Conversely, Restaurant Brands International (NYSE: QSR) is up 4.21% since 07/12/2018. It is currently trading at $ 64.07 and has returned 5.80% over the last week.
Ball Corporation (NYSE: BLL) and Restaurant Brands International Inc. (NYSE: QSR) are the two most active stocks in the packaging and container industry. the trading volumes of today. The market is clearly enthusiastic about these two actions, but what is the best investment? To answer this question, we will compare the two companies based on the strength of their growth, profitability, risk, returns, valuation, analyst recommendations and internal trends.
Growth
rate is a defining characteristic of the best companies for long-term investment. Analysts expect BLL to increase profits at an annual rate of 10.11% over the next 5 years. Comparatively, QSR is expected to grow at an annual rate of 19.13%. All else being equal, the higher growth rate of QSR would imply a greater potential for capital appreciation.
Profitability and Returns
Just, if not more, than the rate of growth is the quality of that growth. Growth can actually hurt investors if it comes at the cost of low profitability and low returns. To account for differences in capital structure, we will use EBITDA margin and return on invested capital as measures of profitability and return, compared to an EBITDA margin of 40.06% for Restaurant Brands International Inc. ( 1965S003). Flow
Money is king when it comes to investing. Free cash flow ("FCF") per BLL share for the last twelve months was -0.98. Comparatively, free cash flow per share of QSR was -0.57. In terms of percentage of sales, BLL's free cash flow was -3.12% while QSR converted -3.11% of its revenue into cash flow. This means that for a given level of sales, QSR is able to generate more free cash flow for investors.
Valuation
BLL trades at a forward P / E of 14.06, a P / B of 3.29, and a P / S of 1.17, compared to a P / E before 21.50, a P / B of 7.68, and a P / S of 3.31 for QSR. BLL is the cheapest of the two stocks based on profits, book value and sales. Since profits are the most important for investors, analysts tend to put more weight on the price / earnings ratio.
Targets and opinions on analyst prices
the stock is accurately valued. To get an idea of "value", we have to compare the current price to a measure of intrinsic value as a price target. BLL is currently priced at -15.56% at its one-year price target of 44.85. Comparatively, the QSR is -9.12% compared to its target price of 70.50. This suggests that BLL is the best investment over the next year
Insider Activity and Investor Sentiment
Short Term Interest, or the Percentage of Marketable Shares of 39, an action currently underway to have an impulse on feeling. BLL has a short ratio of 5.52 compared to a short interest of 5.54 for QSR. This implies that the market is currently less bearish on the BLL outlook.
Abstract
Ball Corporation (NYSE: BLL) beat Restaurant Brands International Inc. (NYSE: QSR) out of a total of 8 of the 14 factors compared between the two stocks. BLL generates a higher return on investment and higher liquidity. In terms of valuation, BLL is the cheapest of the two stocks on the basis of profits, book value and sales. BLL is more undervalued compared to its price target. Finally, BLL has better sentiment signals based on a short interest.
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