Analyzing Ranpak (NYSE:PACK) & UFP Technologies (NASDAQ:UFPT)

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

Earnings & Valuation

This table compares UFP Technologies and Ranpak”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UFP Technologies	$597.95 million	2.87	$58.98 million	$8.63	25.82
Ranpak	$368.90 million	1.07	-$21.50 million	($0.44)	-10.67

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

Profitability

This table compares UFP Technologies and Ranpak’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UFP Technologies	11.40%	21.54%	12.00%
Ranpak	-9.48%	-6.79%	-3.28%

Insider & Institutional Ownership

87.3% of UFP Technologies shares are held by institutional investors. Comparatively, 85.9% of Ranpak shares are held by institutional investors. 4.4% of UFP Technologies shares are held by insiders. Comparatively, 8.4% of Ranpak shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for UFP Technologies and Ranpak, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UFP Technologies	0	2	1	0	2.33
Ranpak	1	1	2	0	2.25

UFP Technologies presently has a consensus price target of $289.00, indicating a potential upside of 29.70%. Ranpak has a consensus price target of $7.50, indicating a potential upside of 59.74%. Given Ranpak’s higher probable upside, analysts plainly believe Ranpak is more favorable than UFP Technologies.

Volatility & Risk

UFP Technologies has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Ranpak has a beta of 2.83, suggesting that its share price is 183% more volatile than the S&P 500.

Summary

UFP Technologies beats Ranpak on 10 of the 14 factors compared between the two stocks.

About UFP Technologies

UFP Technologies, Inc. designs and manufactures solutions for medical devices, sterile packaging, and other highly engineered custom products. The company offers protective drapes for robotic surgery, single patient use surfaces, advanced wound care, infection prevention, disposables for surgical and endoscopic procedures, packaging for medical devices, orthopedic implants, biopharma drug manufacturing, and coils for catheters; and molded components for applications in acoustic insulation, interior trim, load floors, sunshades, SUV cargo cover handles, driveshaft damping, engine and manifold covers, quarter panels, and wheel liners. It also provides molded composites for commercial aviation and military gear for use in backpack components, knee and elbow pads, eyewear, and helmets; and reusable cases and custom for applications in military ballistics panels, virtual training systems, drones, communications equipment, and rugged portable computers. In addition, the company provides engineered products and components to customers in the automotive, aerospace and defense, and industrial markets for applications in military uniform and gear components, automotive interior trim, air filtration, and protective cases and inserts. It markets and sells its products through a direct sales force. The company was founded in 1963 and is headquartered in Newburyport, Massachusetts.

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.