Karat Packaging (NASDAQ:KRT – Get Free Report) is one of 158 public companies in the “Trading Companies & Distributors” industry, but how does it contrast to its competitors? We will compare Karat Packaging to related companies based on the strength of its profitability, analyst recommendations, dividends, institutional ownership, risk, valuation and earnings.
Volatility & Risk
Karat Packaging has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Karat Packaging’s competitors have a beta of 1.33, meaning that their average stock price is 33% more volatile than the S&P 500.
Insider & Institutional Ownership
25.2% of Karat Packaging shares are owned by institutional investors. Comparatively, 51.1% of shares of all “Trading Companies & Distributors” companies are owned by institutional investors. 57.9% of Karat Packaging shares are owned by insiders. Comparatively, 17.1% of shares of all “Trading Companies & Distributors” companies are owned 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.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Karat Packaging and its competitors, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Karat Packaging | 1 | 2 | 3 | 0 | 2.33 |
| Karat Packaging Competitors | 1465 | 4957 | 6830 | 240 | 2.43 |
Karat Packaging currently has a consensus target price of $47.00, suggesting a potential downside of 14.78%. As a group, “Trading Companies & Distributors” companies have a potential upside of 9.79%. Given Karat Packaging’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Karat Packaging has less favorable growth aspects than its competitors.
Profitability
This table compares Karat Packaging and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Karat Packaging | 10.18% | 30.62% | 16.67% |
| Karat Packaging Competitors | 1.02% | -33.84% | 3.51% |
Dividends
Karat Packaging pays an annual dividend of $1.88 per share and has a dividend yield of 3.4%. Karat Packaging pays out 75.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Trading Companies & Distributors” companies pay a dividend yield of 2.7% and pay out 34.8% of their earnings in the form of a dividend. Karat Packaging has increased its dividend for 2 consecutive years.
Valuation and Earnings
This table compares Karat Packaging and its competitors gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Karat Packaging | $467.74 million | $31.48 million | 22.06 |
| Karat Packaging Competitors | $6.57 billion | $360.25 million | 34.08 |
Karat Packaging’s competitors have higher revenue and earnings than Karat Packaging. Karat Packaging is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Summary
Karat Packaging competitors beat Karat Packaging on 10 of the 15 factors compared.
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.
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