Ardagh Metal Packaging S.A. (AMBP) vs Karat Packaging Inc. (KRT)

Ardagh Metal Packaging S.A. and Karat Packaging Inc. are both Packaging & Containers companies. Ardagh Metal Packaging S.A. is the larger, with a market value of $2.6B against $1.1B — 2.4× the size. Karat Packaging Inc. trades at the lower P/E: 21.2× against 73.0×. Ardagh Metal Packaging S.A. grew revenue faster over the last twelve months: 14.5% against 11.6%. Karat Packaging Inc. has the higher net margin (10.2% vs 0.42%) and the higher return on invested capital (25.5% vs 5.36%). Both pay a dividend; Ardagh Metal Packaging S.A. yields more (11.0% vs 1.15%). Across the 22 metrics below, Karat Packaging Inc. leads on 12 and Ardagh Metal Packaging S.A. on 10.

Valuation

Metric AMBP KRT Packaging & Containers median
P/E 73.00 21.18 15.79
P/S 0.44 2.15 0.88
P/B n/m 6.09 1.60
Price to free cash flow 10.27 20.32 13.41
EV/EBITDA 8.80 12.23 9.04
EV/Sales 1.13 2.11 1.31
Earnings yield 1.37% 4.72% 5.04%
Free cash flow yield 9.74% 4.92% 6.34%

Profitability

Metric AMBP KRT Packaging & Containers median
Gross margin 12.72% 40.73% 20.03%
Operating margin 4.87% 12.79% 8.36%
Net margin 0.42% 10.18% 4.53%
Free cash flow margin 5.14% 10.58% 5.14%
Return on equity (4.68%) 29.80% 11.28%
Return on assets 0.45% 15.74% 4.29%
Return on invested capital 5.36% 25.49% 6.43%

Growth

Metric AMBP KRT Packaging & Containers median
Revenue growth (TTM) 14.53% 11.62% 9.10%
EPS growth (last fiscal year) 60.00% 4.70% —
Revenue growth, 5-year CAGR 9.76% 9.62% 5.66%
Net income growth, 5-year CAGR 0.00% 12.44% 0.00%

Health

Metric AMBP KRT Packaging & Containers median
Debt to equity (5.79) 0.20 0.78
Current ratio 1.06 2.25 1.29
Net debt to EBITDA 5.51 (0.03) 2.65

Dividend

Metric AMBP KRT Packaging & Containers median
Dividend yield 11.02% 1.15% 2.79%
Payout ratio 5.00 0.00 0.28

Size

Metric AMBP KRT Packaging & Containers median
Market cap 2.58b 1.09b 3.71b

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