Karat Packaging Inc. (KRT) vs Ranpak Holdings Corp (PACK)

Karat Packaging Inc. and Ranpak Holdings Corp are both Packaging & Containers companies. Karat Packaging Inc. is the larger, with a market value of $1.1B against $361.9M — 3.0× the size. Ranpak Holdings Corp 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 9.77%. Karat Packaging Inc. has the higher net margin (10.2% vs −9.09%) and the higher return on invested capital (25.5% vs −0.91%). Across the 21 metrics below, Karat Packaging Inc. leads on 18 and Ranpak Holdings Corp on 3.

Valuation

Metric KRT PACK Packaging & Containers median
P/E 21.18 n/m 15.79
P/S 2.15 0.90 0.88
P/B 6.09 0.72 1.60
Price to free cash flow 20.32 29.84 13.41
EV/EBITDA 12.23 13.13 9.04
EV/Sales 2.11 1.76 1.31
Earnings yield 4.72% (10.02%) 5.04%
Free cash flow yield 4.92% 3.35% 6.34%

Profitability

Metric KRT PACK Packaging & Containers median
Gross margin 40.73% 33.57% 20.03%
Operating margin 12.79% (3.06%) 8.36%
Net margin 10.18% (9.09%) 4.53%
Free cash flow margin 10.58% 1.72% 5.14%
Return on equity 29.80% (7.18%) 11.28%
Return on assets 15.74% (3.40%) 4.29%
Return on invested capital 25.49% (0.91%) 6.43%

Growth

Metric KRT PACK Packaging & Containers median
Revenue growth (TTM) 11.62% 9.77% 9.10%
EPS growth (last fiscal year) 4.70% (95.65%) —
Revenue growth, 5-year CAGR 9.62% 5.78% 5.66%
Net income growth, 5-year CAGR 12.44% 0.00% 0.00%

Health

Metric KRT PACK Packaging & Containers median
Debt to equity 0.20 0.77 0.78
Current ratio 2.25 1.79 1.29
Net debt to EBITDA (0.03) 7.76 2.65

Dividend

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

Size

Metric KRT PACK Packaging & Containers median
Market cap 1.09b 361.90m 3.71b

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