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 $1.1B against $900.5M — 1.2× the size. O-I Glass, Inc. has negative trailing earnings, so its P/E is not meaningful; Karat Packaging Inc. trades at 21.2×. Karat Packaging Inc. grew revenue faster over the last twelve months: 11.6% against −1.87%. Karat Packaging Inc. has the higher net margin (10.2% vs −18.1%) and the higher return on invested capital (25.5% vs 6.43%). 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 21.18 n/m 15.79
P/S 2.15 0.14 0.88
P/B 6.09 1.67 1.60
Price to free cash flow 20.32 n/m 13.41
EV/EBITDA 12.23 5.39 9.04
EV/Sales 2.11 0.85 1.31
Earnings yield 4.72% (128.33%) 5.04%
Free cash flow yield 4.92% (2.78%) 6.34%

Profitability

Metric KRT OI Packaging & Containers median
Gross margin 40.73% 14.82% 20.03%
Operating margin 12.79% 8.08% 8.36%
Net margin 10.18% (18.13%) 4.53%
Free cash flow margin 10.58% (0.39%) 5.14%
Return on equity 29.80% (128.97%) 11.28%
Return on assets 15.74% (13.35%) 4.29%
Return on invested capital 25.49% 6.43% 6.43%

Growth

Metric KRT OI Packaging & Containers median
Revenue growth (TTM) 11.62% (1.87%) 9.10%
EPS growth (last fiscal year) 4.70% (21.74%) —
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 8.89 0.78
Current ratio 2.25 1.26 1.29
Net debt to EBITDA (0.03) 3.69 2.65

Dividend

Metric KRT OI Packaging & Containers median
Dividend yield 1.15% — 2.79%
Payout ratio 0.00 0.00 0.28

Size

Metric KRT OI Packaging & Containers median
Market cap 1.09b 900.45m 3.71b

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