Karat Packaging Inc. (KRT) vs O-I Glass, Inc. (OI)

Karat Packaging Inc. and O-I Glass, Inc. are both Packaging & Containers companies. Karat Packaging Inc. is the larger, with a market value of $1.0B against $829.8M — 1.2× the size. O-I Glass, Inc. has negative trailing earnings, so its P/E is not meaningful; Karat Packaging Inc. trades at 20.5×. Karat Packaging Inc. grew revenue faster over the last twelve months: 11.6% against −1.94%. Karat Packaging Inc. has the higher net margin (10.2% vs −18.9%) and the higher return on invested capital (25.5% vs 5.45%). Across the 20 metrics below, Karat Packaging Inc. leads on 16 and O-I Glass, Inc. on 4.

Valuation

Metric KRT OI Packaging & Containers median
P/E 20.50 n/m 20.50
P/S 2.08 0.13 0.84
P/B 5.89 1.54 1.81
Price to free cash flow 19.67 n/m 13.39
EV/EBITDA 11.83 2.93 9.53
EV/Sales 2.04 0.83 1.39
Earnings yield 4.88% (145.07%) 2.89%
Free cash flow yield 5.09% (5.57%) 5.42%

Profitability

Metric KRT OI Packaging & Containers median
Gross margin 40.73% 13.24% 20.09%
Operating margin 12.79% 6.74% 6.42%
Net margin 10.18% (18.89%) 3.43%
Free cash flow margin 10.58% (0.73%) 4.78%
Return on equity 29.80% (125.56%) 2.28%
Return on assets 15.74% (13.86%) 1.04%
Return on invested capital 25.49% 5.45% 4.57%

Growth

Metric KRT OI Packaging & Containers median
Revenue growth (TTM) 11.62% (1.94%) 4.05%
EPS growth (last fiscal year) 4.70% (21.74%) 0.69%
Revenue growth, 5-year CAGR 9.62% 1.08% 5.66%
Net income growth, 5-year CAGR 12.44% 0.00% 0.00%

Health

Metric KRT OI Packaging & Containers median
Debt to equity 0.20 8.84 0.79
Current ratio 2.25 1.28 1.29
Net debt to EBITDA (0.03) 3.69 2.59

Dividend

Metric KRT OI Packaging & Containers median
Dividend yield 3.54% — 3.38%
Payout ratio 0.73 — 0.60

Size

Metric KRT OI Packaging & Containers median
Market cap 1.03b 829.76m 3.71b

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