GPK vs SON

For growth investors, Sonoco Products Company (SON) is the stronger pick with 41.

7% revenue growth year-over-year, versus -2. 2% for Graphic Packaging Holding Company (GPK). Graphic Packaging Holding Company (GPK) offers the better valuation at 7. 2x trailing P/E (12. 5x forward), making it the more compelling value choice. Analysts rate Graphic Packaging Holding Company (GPK) a "Buy" — based on 27 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Graphic Packaging Holding Company (GPK) is the cheapest at 7.

2x versus Sonoco Products Company at 13. 0x. On forward P/E, Sonoco Products Company is actually cheaper at 8. 9x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Sonoco Products Company wins at 0. 62x versus Graphic Packaging Holding Company's 0. 63x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Sonoco Products Company (SON) delivered a total return of -10.

0%, compared to -35. 4% for Graphic Packaging Holding Company (GPK). Over 10 years, the gap is even starker: SON returned +49. 4% versus GPK's +9. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Sonoco Products Company (SON) is the lower-risk stock at 0.

53β versus Graphic Packaging Holding Company's 0. 95β — meaning GPK is approximately 78% more volatile than SON relative to the S&P 500. On balance sheet safety, Sonoco Products Company (SON) carries a lower debt/equity ratio of 134% versus 167% for Graphic Packaging Holding Company — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Sonoco Products Company (SON) is pulling ahead at 41.

7% versus -2. 2% for Graphic Packaging Holding Company (GPK). On earnings-per-share growth, the picture is similar: Sonoco Products Company grew EPS 141. 2% year-over-year, compared to -31. 5% for Graphic Packaging Holding Company. Over a 3-year CAGR, SON leads at 8. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Sonoco Products Company (SON) is the more profitable company, earning 5.

3% net margin versus 5. 2% for Graphic Packaging Holding Company — meaning it keeps 5. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GPK leads at 10. 1% versus 9. 5% for SON. At the gross margin level — before operating expenses — SON leads at 20. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Sonoco Products Company (SON) is the more undervalued stock at a PEG of 0. 62x versus Graphic Packaging Holding Company's 0. 63x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Sonoco Products Company (SON) trades at 8. 9x forward P/E versus 12. 5x for Graphic Packaging Holding Company — 3. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GPK: 14. 8% to $12. 20.

All stocks in this comparison pay dividends.

Graphic Packaging Holding Company (GPK) offers the highest yield at 4. 1%, versus 4. 1% for Sonoco Products Company (SON).

For long-horizon retirement investors, Sonoco Products Company (SON) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

53), 4. 1% yield). Both have compounded well over 10 years (SON: +49. 4%, GPK: +9. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: GPK is a small-cap deep-value stock; SON is a small-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.