Seek Returns logo

AMCR vs. IHG: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at AMCR and IHG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

AMCR’s market capitalization stands at 22.20 billion USD, while IHG’s is 18.46 billion USD, indicating their market valuations are broadly comparable.

With betas of 0.73 for AMCR and 0.89 for IHG, both stocks show similar sensitivity to overall market movements.

IHG is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. AMCR, on the other hand, is a domestic entity.

SymbolAMCRIHG
Company NameAmcor plcInterContinental Hotels Group PLC
CountryCHGB
SectorConsumer CyclicalConsumer Cyclical
IndustryPackaging & ContainersTravel Lodging
CEOPeter Konieczny Dip Eng, MBA, MSc Mech EngElie Wajih Maalouf
Price9.63 USD119.66 USD
Market Cap22.20 billion USD18.46 billion USD
Beta0.730.89
ExchangeNYSENYSE
IPO DateMay 15, 2012April 10, 2003
ADRNoYes

Historical Performance

This chart compares the performance of AMCR and IHG by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

AMCR vs. IHG: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AMCR

11.74%

Packaging & Containers Industry

Max
20.97%
Q3
18.53%
Median
9.15%
Q1
3.67%
Min
-15.31%

AMCR’s Return on Equity of 11.74% is on par with the norm for the Packaging & Containers industry, indicating its profitability relative to shareholder equity is typical for the sector.

IHG

-27.81%

Travel Lodging Industry

Max
54.87%
Q3
39.53%
Median
21.82%
Q1
-42.75%
Min
-92.80%

IHG has a negative Return on Equity of -27.81%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

AMCR vs. IHG: A comparison of their ROE against their respective Packaging & Containers and Travel Lodging industry benchmarks.

Return on Invested Capital

AMCR

4.02%

Packaging & Containers Industry

Max
11.55%
Q3
9.42%
Median
6.03%
Q1
2.83%
Min
-6.57%

AMCR’s Return on Invested Capital of 4.02% is in line with the norm for the Packaging & Containers industry, reflecting a standard level of efficiency in generating profits from its capital base.

IHG

22.47%

Travel Lodging Industry

Max
22.47%
Q3
17.37%
Median
15.46%
Q1
6.72%
Min
-0.59%

In the upper quartile for the Travel Lodging industry, IHG’s Return on Invested Capital of 22.47% signifies a highly effective use of its capital to generate profits when compared to its peers.

AMCR vs. IHG: A comparison of their ROIC against their respective Packaging & Containers and Travel Lodging industry benchmarks.

Net Profit Margin

AMCR

3.37%

Packaging & Containers Industry

Max
10.07%
Q3
5.37%
Median
3.61%
Q1
1.49%
Min
-2.97%

AMCR’s Net Profit Margin of 3.37% is aligned with the median group of its peers in the Packaging & Containers industry. This indicates its ability to convert revenue into profit is typical for the sector.

IHG

12.76%

Travel Lodging Industry

Max
19.75%
Q3
16.41%
Median
12.76%
Q1
11.98%
Min
9.75%

IHG’s Net Profit Margin of 12.76% is aligned with the median group of its peers in the Travel Lodging industry. This indicates its ability to convert revenue into profit is typical for the sector.

AMCR vs. IHG: A comparison of their Net Profit Margin against their respective Packaging & Containers and Travel Lodging industry benchmarks.

Operating Profit Margin

AMCR

5.29%

Packaging & Containers Industry

Max
14.60%
Q3
11.93%
Median
8.05%
Q1
5.47%
Min
2.09%

AMCR’s Operating Profit Margin of 5.29% is in the lower quartile for the Packaging & Containers industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

IHG

21.15%

Travel Lodging Industry

Max
30.55%
Q3
21.77%
Median
21.15%
Q1
15.15%
Min
15.10%

IHG’s Operating Profit Margin of 21.15% is around the midpoint for the Travel Lodging industry, indicating that its efficiency in managing core business operations is typical for the sector.

AMCR vs. IHG: A comparison of their Operating Margin against their respective Packaging & Containers and Travel Lodging industry benchmarks.

Profitability at a Glance

SymbolAMCRIHG
Return on Equity (TTM)11.74%-27.81%
Return on Assets (TTM)2.51%13.23%
Return on Invested Capital (TTM)4.02%22.47%
Net Profit Margin (TTM)3.37%12.76%
Operating Profit Margin (TTM)5.29%21.15%
Gross Profit Margin (TTM)20.00%29.56%

Financial Strength

Current Ratio

AMCR

1.70

Packaging & Containers Industry

Max
1.88
Q3
1.79
Median
1.38
Q1
1.16
Min
0.80

AMCR’s Current Ratio of 1.70 aligns with the median group of the Packaging & Containers industry, indicating that its short-term liquidity is in line with its sector peers.

IHG

0.97

Travel Lodging Industry

Max
0.99
Q3
0.98
Median
0.96
Q1
0.83
Min
0.83

IHG’s Current Ratio of 0.97 aligns with the median group of the Travel Lodging industry, indicating that its short-term liquidity is in line with its sector peers.

AMCR vs. IHG: A comparison of their Current Ratio against their respective Packaging & Containers and Travel Lodging industry benchmarks.

Debt-to-Equity Ratio

AMCR

2.40

Packaging & Containers Industry

Max
2.47
Q3
2.22
Median
1.22
Q1
0.79
Min
0.56

AMCR’s leverage is in the upper quartile of the Packaging & Containers industry, with a Debt-to-Equity Ratio of 2.40. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

IHG

-1.60

Travel Lodging Industry

Max
4.37
Q3
3.27
Median
2.12
Q1
1.13
Min
0.53

IHG has a Debt-to-Equity Ratio of -1.60, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.

AMCR vs. IHG: A comparison of their D/E Ratio against their respective Packaging & Containers and Travel Lodging industry benchmarks.

Interest Coverage Ratio

AMCR

2.11

Packaging & Containers Industry

Max
6.21
Q3
4.64
Median
2.89
Q1
1.61
Min
-0.51

AMCR’s Interest Coverage Ratio of 2.11 is positioned comfortably within the norm for the Packaging & Containers industry, indicating a standard and healthy capacity to cover its interest payments.

IHG

5.13

Travel Lodging Industry

Max
7.05
Q3
7.05
Median
5.31
Q1
4.28
Min
4.07

IHG’s Interest Coverage Ratio of 5.13 is positioned comfortably within the norm for the Travel Lodging industry, indicating a standard and healthy capacity to cover its interest payments.

AMCR vs. IHG: A comparison of their Interest Coverage against their respective Packaging & Containers and Travel Lodging industry benchmarks.

Financial Strength at a Glance

SymbolAMCRIHG
Current Ratio (TTM)1.700.97
Quick Ratio (TTM)1.160.97
Debt-to-Equity Ratio (TTM)2.40-1.60
Debt-to-Asset Ratio (TTM)0.510.78
Net Debt-to-EBITDA Ratio (TTM)7.172.15
Interest Coverage Ratio (TTM)2.115.13

Growth

The following charts compare key year-over-year (YoY) growth metrics for AMCR and IHG. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AMCR vs. IHG: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AMCR vs. IHG: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AMCR vs. IHG: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AMCR

5.27%

Packaging & Containers Industry

Max
9.30%
Q3
4.22%
Median
2.67%
Q1
1.42%
Min
0.00%

With a Dividend Yield of 5.27%, AMCR offers a more attractive income stream than most of its peers in the Packaging & Containers industry, signaling a strong commitment to shareholder returns.

IHG

0.93%

Travel Lodging Industry

Max
3.94%
Q3
1.93%
Median
0.94%
Q1
0.43%
Min
0.00%

IHG’s Dividend Yield of 0.93% is consistent with its peers in the Travel Lodging industry, providing a dividend return that is standard for its sector.

AMCR vs. IHG: A comparison of their Dividend Yield against their respective Packaging & Containers and Travel Lodging industry benchmarks.

Dividend Payout Ratio

AMCR

161.75%

Packaging & Containers Industry

Max
223.77%
Q3
154.70%
Median
54.74%
Q1
23.39%
Min
0.00%

AMCR’s Dividend Payout Ratio of 161.75% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.

IHG

41.24%

Travel Lodging Industry

Max
114.17%
Q3
36.83%
Median
28.47%
Q1
9.43%
Min
0.00%

IHG’s Dividend Payout Ratio of 41.24% is in the upper quartile for the Travel Lodging industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

AMCR vs. IHG: A comparison of their Payout Ratio against their respective Packaging & Containers and Travel Lodging industry benchmarks.

Dividend at a Glance

SymbolAMCRIHG
Dividend Yield (TTM)5.27%0.93%
Dividend Payout Ratio (TTM)161.75%41.24%

Valuation

Price-to-Earnings Ratio

AMCR

30.68

Packaging & Containers Industry

Max
57.57
Q3
40.45
Median
25.12
Q1
18.16
Min
10.25

AMCR’s P/E Ratio of 30.68 is within the middle range for the Packaging & Containers industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

IHG

30.30

Travel Lodging Industry

Max
40.59
Q3
29.79
Median
22.44
Q1
18.46
Min
2.45

A P/E Ratio of 30.30 places IHG in the upper quartile for the Travel Lodging industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

AMCR vs. IHG: A comparison of their P/E Ratio against their respective Packaging & Containers and Travel Lodging industry benchmarks.

Forward P/E to Growth Ratio

AMCR

3.58

Packaging & Containers Industry

Max
3.19
Q3
2.69
Median
2.20
Q1
2.02
Min
2.02

AMCR’s Forward PEG Ratio of 3.58 is exceptionally high for the Packaging & Containers industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.

IHG

2.61

Travel Lodging Industry

Max
2.54
Q3
1.92
Median
1.46
Q1
0.89
Min
0.19

IHG’s Forward PEG Ratio of 2.61 is exceptionally high for the Travel Lodging industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.

AMCR vs. IHG: A comparison of their Forward PEG Ratio against their respective Packaging & Containers and Travel Lodging industry benchmarks.

Price-to-Sales Ratio

AMCR

1.65

Packaging & Containers Industry

Max
1.99
Q3
1.28
Median
0.99
Q1
0.75
Min
0.36

AMCR’s P/S Ratio of 1.65 is in the upper echelon for the Packaging & Containers industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

IHG

3.70

Travel Lodging Industry

Max
5.59
Q3
4.22
Median
3.60
Q1
2.95
Min
1.17

IHG’s P/S Ratio of 3.70 aligns with the market consensus for the Travel Lodging industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AMCR vs. IHG: A comparison of their P/S Ratio against their respective Packaging & Containers and Travel Lodging industry benchmarks.

Price-to-Book Ratio

AMCR

3.61

Packaging & Containers Industry

Max
5.73
Q3
3.44
Median
2.08
Q1
1.76
Min
0.55

AMCR’s P/B Ratio of 3.61 is in the upper tier for the Packaging & Containers industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

IHG

-8.23

Travel Lodging Industry

Max
11.01
Q3
10.16
Median
6.87
Q1
3.05
Min
0.61

IHG has a negative P/B Ratio of -8.23, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.

AMCR vs. IHG: A comparison of their P/B Ratio against their respective Packaging & Containers and Travel Lodging industry benchmarks.

Valuation at a Glance

SymbolAMCRIHG
Price-to-Earnings Ratio (P/E, TTM)30.6830.30
Forward PEG Ratio (TTM)3.582.61
Price-to-Sales Ratio (P/S, TTM)1.653.70
Price-to-Book Ratio (P/B, TTM)3.61-8.23
Price-to-Free Cash Flow Ratio (P/FCF, TTM)20.3828.16
EV-to-EBITDA (TTM)29.2616.77
EV-to-Sales (TTM)2.184.24