AMCR vs. YUM: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AMCR and YUM, comparing key factors like performance, valuation metrics, dividends, and financial strength.
Company Overview
YUM’s market capitalization of 39.73 billion USD is significantly greater than AMCR’s 21.00 billion USD, highlighting its more substantial market valuation.
With betas of 0.73 for AMCR and 0.74 for YUM, both stocks show similar sensitivity to overall market movements.
| Symbol | AMCR | YUM |
|---|---|---|
| Company Name | Amcor plc | Yum! Brands, Inc. |
| Country | CH | US |
| Sector | Consumer Cyclical | Consumer Cyclical |
| Industry | Packaging & Containers | Restaurants |
| CEO | Mr. Peter Konieczny Dip Eng, MBA, MSc Mech Eng | Mr. David W. Gibbs |
| Price | 9.11 USD | 142.925 USD |
| Market Cap | 21.00 billion USD | 39.73 billion USD |
| Beta | 0.73 | 0.74 |
| Exchange | NYSE | NYSE |
| IPO Date | May 15, 2012 | September 17, 1997 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AMCR and YUM over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
- AMCR: $9599.58 (-4.00%)
- YUM: $10641.46 (6.41%)
Valuation Metrics Comparison
This section compares the market valuation of AMCR and YUM. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.
- AMCR’s Forward PEG ratio of 2.89 is very high. This suggests that investors have priced in a substantial amount of future earnings growth, potentially making the stock vulnerable if these high expectations are not met or if growth slows.
- YUM’s Price-to-Book (P/B) ratio of -5.13 indicates a negative book value. This is a serious warning sign regarding its financial stability and raises critical questions about its solvency and overall financial health.
| Symbol | AMCR | YUM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 29.02 | 28.08 |
| Forward PEG Ratio (TTM) | 2.89 | 2.05 |
| Price-to-Sales Ratio (P/S, TTM) | 3.06 | 5.13 |
| Price-to-Book Ratio (P/B, TTM) | 3.41 | -5.13 |
| EV-to-EBITDA (TTM) | 28.24 | 17.16 |
| EV-to-Sales (TTM) | 4.11 | 6.52 |
Dividend Comparison
AMCR’s dividend yield of 5.57% is notably higher than YUM’s 1.93%, suggesting a stronger emphasis on returning cash to shareholders.
| Symbol | AMCR | YUM |
|---|---|---|
| Dividend Yield (TTM) | 5.57% | 1.93% |
Financial Strength Metrics Comparison
This section evaluates the financial strength of AMCR and YUM. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.
- YUM’s Debt-to-Equity (D/E) ratio of -1.46 indicates negative shareholder equity. This is a critical issue, signaling deep financial instability and potentially jeopardizing its ongoing operations and ability to secure credit.
| Symbol | AMCR | YUM |
|---|---|---|
| Current Ratio (TTM) | 1.70 | 1.40 |
| Quick Ratio (TTM) | 1.16 | 1.40 |
| Debt-to-Equity Ratio (TTM) | 2.40 | -1.46 |
| Debt-to-Asset Ratio (TTM) | 0.51 | 1.71 |
| Net Debt-to-EBITDA Ratio (TTM) | 7.21 | 3.65 |
| Interest Coverage Ratio (TTM) | 8.38 | 5.79 |