Ranpak (NYSE:PACK – Get Free Report) and Smurfit Westrock (NYSE:SW – Get Free Report) are both materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.
Earnings & Valuation
This table compares Ranpak and Smurfit Westrock”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ranpak | $395.00 million | 0.78 | -$38.30 million | ($0.40) | -8.96 |
| Smurfit Westrock | $31.18 billion | 0.74 | $699.00 million | $0.89 | 49.68 |
Smurfit Westrock has higher revenue and earnings than Ranpak. Ranpak is trading at a lower price-to-earnings ratio than Smurfit Westrock, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Ranpak has a beta of 3.11, indicating that its share price is 211% more volatile than the S&P 500. Comparatively, Smurfit Westrock has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Ranpak and Smurfit Westrock, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ranpak | 1 | 1 | 2 | 0 | 2.25 |
| Smurfit Westrock | 1 | 1 | 11 | 0 | 2.77 |
Ranpak presently has a consensus price target of $3.50, suggesting a potential downside of 2.34%. Smurfit Westrock has a consensus price target of $55.15, suggesting a potential upside of 24.73%. Given Smurfit Westrock’s stronger consensus rating and higher possible upside, analysts plainly believe Smurfit Westrock is more favorable than Ranpak.
Profitability
This table compares Ranpak and Smurfit Westrock’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ranpak | -8.28% | -6.65% | -3.15% |
| Smurfit Westrock | 1.50% | 4.27% | 1.71% |
Insider & Institutional Ownership
85.9% of Ranpak shares are owned by institutional investors. Comparatively, 83.4% of Smurfit Westrock shares are owned by institutional investors. 8.8% of Ranpak shares are owned by company insiders. Comparatively, 0.5% of Smurfit Westrock shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Smurfit Westrock beats Ranpak on 10 of the 14 factors compared between the two stocks.
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.
About Smurfit Westrock
Smurfit Westrock Plc, together with its subsidiaries, manufactures, distributes, and sells containerboard, corrugated containers, and other paper-based packaging products in Ireland and internationally. The company produces containerboard that it converts into corrugated containers or sells to third parties, as well as produces other types of paper, such as consumer packaging board, sack paper, graphic paper, solid board and graphic board, and other paper-based packaging products, such as consumer packaging, solid board packaging, paper sacks, and other packaging products, including bag-in-box. It also produces linerboard and corrugated medium, paperboard, and non-packaging grades of paper, as well as converted products, such as folding cartons and corrugated boxes, and other products; recycled paper-based packaging products; and packaging machinery. The company primarily serves food and beverage, e-commerce, retail, consumer goods, industrial, and foodservice markets. Smurfit Westrock Plc was founded in 1934 and is headquartered in Dublin, Ireland.
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