Analyzing RPC Group (OTCMKTS:RPCGF) and Packaging Corporation of America (NYSE:PKG)

Packaging Corporation of America (NYSE:PKG) and RPC Group (OTCMKTS:RPCGF) are both materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Analyst Recommendations

This is a breakdown of current recommendations for Packaging Corporation of America and RPC Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Packaging Corporation of America	0	3	6	1	2.80
RPC Group	0	0	0	0	0.00

Packaging Corporation of America currently has a consensus price target of $264.57, suggesting a potential upside of 9.84%. Given Packaging Corporation of America’s stronger consensus rating and higher probable upside, analysts clearly believe Packaging Corporation of America is more favorable than RPC Group.

Profitability

This table compares Packaging Corporation of America and RPC Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Packaging Corporation of America	7.25%	18.94%	8.10%
RPC Group	N/A	N/A	N/A

Institutional and Insider Ownership

89.8% of Packaging Corporation of America shares are held by institutional investors. 1.6% of Packaging Corporation of America 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.

Volatility & Risk

Packaging Corporation of America has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, RPC Group has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500.

Earnings & Valuation

This table compares Packaging Corporation of America and RPC Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Packaging Corporation of America	$8.99 billion	2.39	$774.10 million	$7.70	31.28
RPC Group	$4.97 billion	0.85	$336.18 million	N/A	N/A

Packaging Corporation of America has higher revenue and earnings than RPC Group.

Summary

Packaging Corporation of America beats RPC Group on 13 of the 13 factors compared between the two stocks.

About Packaging Corporation of America

Packaging Corporation of America engages in the production of container products. It operates through the following segments: Packaging, Paper, and Corporate and Other. The Packaging segment offers a variety of corrugated packaging products, such as conventional shipping containers. The Paper segment manufactures and sells a range of papers, including communication-based papers, and pressure sensitive papers. The Corporate and Other segment focuses on transportation assets, such as rail cars, and trucks. The company was founded in 1959 and is headquartered in Lake Forest, IL.

About RPC Group

RPC Group Plc operates as a plastic product design and engineering company worldwide. It operates through two segments, Packaging and Non-Packaging. The Packaging segment designs plastic packaging for end markets, including the food, beverage, personal care, and healthcare markets; and designs and manufactures other plastic products, such as containers for surface coatings comprising paint pots and vaping accessories. It sells its products directly to the brands, as well as to retailers or fillers. The Non-Packaging segment designs and manufactures a range of plastic products that include temporary storage systems for waste and recycling; and technical components for the automotive and heavy vehicles industries. It also makes moulds, which are used to make plastic components and packaging products. This segment sells its products to intermediaries. The company was founded in 1991 and is headquartered in Rushden, the United Kingdom.