Smurfit Kappa Group (OTCMKTS:SMFTF – Get Free Report) and Ranpak (NYSE:PACK – Get Free Report) are both materials companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.
Insider & Institutional Ownership
41.9% of Smurfit Kappa Group shares are held by institutional investors. Comparatively, 85.9% of Ranpak shares are held by institutional investors. 8.8% of Ranpak shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Smurfit Kappa Group and Ranpak’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Smurfit Kappa Group | N/A | N/A | N/A |
| Ranpak | -9.09% | -7.18% | -3.41% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Smurfit Kappa Group | N/A | N/A | N/A | $1.19 | 38.02 |
| Ranpak | $395.00 million | 1.10 | -$38.30 million | ($0.44) | -11.52 |
Smurfit Kappa Group has higher earnings, but lower revenue than Ranpak. Ranpak is trading at a lower price-to-earnings ratio than Smurfit Kappa Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and recommmendations for Smurfit Kappa Group and Ranpak, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Smurfit Kappa Group | 0 | 0 | 0 | 0 | 0.00 |
| Ranpak | 1 | 0 | 3 | 0 | 2.50 |
Ranpak has a consensus price target of $7.00, indicating a potential upside of 38.07%. Given Ranpak’s stronger consensus rating and higher possible upside, analysts plainly believe Ranpak is more favorable than Smurfit Kappa Group.
Summary
Ranpak beats Smurfit Kappa Group on 6 of the 11 factors compared between the two stocks.
About Smurfit Kappa Group
Smurfit Kappa Group Plc, together with its subsidiaries, manufactures, distributes, and sells containerboard, corrugated containers, and other paper-based packaging products in Ireland, Germany, France, Mexico, rest of Europe, and other Americas. The company offers e-commerce, retail, consumer, industrial, bottle, protective, heavy-duty, hexacomb, and various punnet packaging products; composite cardboard tubes, bags, and sacks; and bag-in-box, a packaging system that comprises films, accessories, bags, taps, and boxes. It also provides point of sale displays; cardboards of social distancing; corrugated sheet boards, solid board sheets, folding carton sheet boards, sack Kraft papers, MG brown Kraft papers, preprint products, agro-papers, technical papers, BanaBag, and Catcher Board MB12; and various types of containerboards, such as kraftliners, testliners, and containerboard flutings. In addition, the company offers recycling solutions to cardboard and paper products; and supplies packaging machinery. It primarily serves consumer goods, industrial goods, and food and drink sectors. Smurfit Kappa Group Plc was founded in 1934 and is headquartered in Dublin, Ireland.
About Ranpak
Ranpak Holdings Corp., together with its subsidiaries, provides product protection solutions and end-of-line automation solutions for e-commerce and industrial supply chains in North America, Europe, and Asia. The company offers protective packaging solutions, such as void-fill protective systems that convert paper to fill empty spaces in secondary packages and protect objects under the FillPak brand; cushioning protective systems, which convert paper into cushioning pads under the PadPak brand; and wrapping protective systems that create pads or paper mesh to wrap and protect fragile items, as well as to line boxes and provide separation when shipping various objects under the WrapPak, Geami, and ReadyRoll brands, as well as cold chain products, which are used to provide insulation for goods. It also offers end-of-line packaging automation products, which help end users automate the void filling and box closure processes after product packing is complete. The company sells its products to end users primarily through a distributor network, and directly to select end-users. Ranpak Holdings Corp. was founded in 1972 and is headquartered in Concord Township, Ohio.
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