Ranpak (NYSE:PACK) versus Smurfit Kappa Group (OTCMKTS:SMFKY) Critical Survey

Smurfit Kappa Group (OTCMKTS:SMFKY) and Ranpak (NYSE:PACK) are both materials companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Smurfit Kappa Group and Ranpak, as provided by MarketBeat.com.

	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 target price of $7.00, indicating a potential upside of 37.93%. Given Ranpak’s stronger consensus rating and higher possible upside, analysts plainly believe Ranpak is more favorable than Smurfit Kappa Group.

Volatility & Risk

Smurfit Kappa Group has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Ranpak has a beta of 3.14, indicating that its share price is 214% more volatile than the S&P 500.

Earnings and Valuation

This table compares Smurfit Kappa Group and Ranpak”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smurfit Kappa Group	$12.20 billion	0.98	$820.38 million	N/A	N/A
Ranpak	$395.00 million	1.10	-$38.30 million	($0.44)	-11.53

Smurfit Kappa Group has higher revenue and earnings than Ranpak.

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%

Insider and Institutional Ownership

0.0% 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 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

Ranpak beats Smurfit Kappa Group on 7 of the 12 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.