Head-To-Head Survey: Ranpak (NYSE:PACK) and TriMas (NASDAQ:TRS)

Ranpak (NYSE:PACK) and TriMas (NASDAQ:TRS) are both small-cap materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Earnings and Valuation

This table compares Ranpak and TriMas”s gross revenue, earnings per share (EPS) 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)	-8.94
TriMas	$381.63 million	3.56	$120.14 million	$24.33	1.56

TriMas has lower revenue, but higher earnings than Ranpak. Ranpak is trading at a lower price-to-earnings ratio than TriMas, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ranpak and TriMas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ranpak	-8.28%	-6.65%	-3.15%
TriMas	117.63%	5.20%	3.10%

Risk & Volatility

Ranpak has a beta of 3.11, indicating that its share price is 211% more volatile than the S&P 500. Comparatively, TriMas has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Ranpak and TriMas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ranpak	1	1	2	0	2.25
TriMas	0	1	3	0	2.75

Ranpak presently has a consensus price target of $3.50, suggesting a potential downside of 2.10%. TriMas has a consensus price target of $41.50, suggesting a potential upside of 9.53%. Given TriMas’ stronger consensus rating and higher possible upside, analysts plainly believe TriMas is more favorable than Ranpak.

Insider and Institutional Ownership

85.9% of Ranpak shares are owned by institutional investors. Comparatively, 99.4% of TriMas shares are owned by institutional investors. 8.8% of Ranpak shares are owned by insiders. Comparatively, 17.5% of TriMas shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

TriMas beats Ranpak on 12 of the 14 factors compared between the two stocks.

About Ranpak

Ranpak Holdings Corp. (NYSE: PACK) develops and manufactures sustainable, paper-based packaging solutions designed to protect products during shipping and handling. Its offerings serve e-commerce, retail, industrial, food, and other applications where cushioning, void fill, wrapping, and product protection are required. The company’s product portfolio includes paper cushioning and void-fill materials, protective wrapping systems, and packaging automation equipment. Ranpak also provides dispensing systems and related packaging solutions that help customers streamline fulfillment operations while reducing reliance on plastic-based protective packaging.

About TriMas

TriMas Corporation is a diversified manufacturer of engineered products, serving customers in the packaging and aerospace industries. The company sells products to consumer, industrial and aerospace markets through its operating businesses. Its packaging business makes closures and dispensing systems used on containers for products such as food, beverages, personal care items and household goods. Its aerospace business manufactures fasteners and other components used in aircraft and aerospace applications.