Karat Packaging (NASDAQ:KRT – Get Free Report) and ZKH Group (NYSE:ZKH – Get Free Report) are both small-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.
Profitability
This table compares Karat Packaging and ZKH Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Karat Packaging | 6.61% | 19.87% | 10.59% |
| ZKH Group | -0.90% | -2.80% | -1.30% |
Risk and Volatility
Karat Packaging has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, ZKH Group has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.
Insider and Institutional Ownership
Earnings and Valuation
This table compares Karat Packaging and ZKH Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Karat Packaging | $467.74 million | 1.74 | $31.48 million | $1.58 | 25.81 |
| ZKH Group | $1.29 billion | 0.29 | -$19.44 million | ($0.08) | -36.25 |
Karat Packaging has higher earnings, but lower revenue than ZKH Group. ZKH Group is trading at a lower price-to-earnings ratio than Karat Packaging, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Karat Packaging and ZKH Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Karat Packaging | 1 | 2 | 3 | 0 | 2.33 |
| ZKH Group | 1 | 0 | 0 | 0 | 1.00 |
Karat Packaging presently has a consensus price target of $36.50, suggesting a potential downside of 10.50%. Given Karat Packaging’s stronger consensus rating and higher possible upside, analysts plainly believe Karat Packaging is more favorable than ZKH Group.
Summary
Karat Packaging beats ZKH Group on 13 of the 14 factors compared between the two stocks.
About Karat Packaging
Karat Packaging Inc., together with its subsidiaries, engages in the manufacture and distribution of single-use disposable products in plastic, paper, biopolymer-based, and other compostable forms used in various restaurant and foodservice settings. It provides food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves, and other products under the Karat Earth brand. The company also provides new product development, design, printing, and logistics services. It offers its products to national and regional distributors, restaurant chains, retail establishments, and online customers. The company was founded in 2000 and is based in Chino, California.
About ZKH Group
ZKH Group Limited develops and operates a maintenance, repair, and operating (MRO) products trading and service platform that offers spare parts, chemicals, manufacturing parts, general consumables, and office supplies in the People’s Republic of China. The company provides MRO procurement and management services; digitalized MRO procurement solutions; and logistics and warehousing services. It also engages in the production and sale of intelligent warehousing equipment. ZKH Group Limited was founded in 1998 and is based in Shanghai, the People’s Republic of China.
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