Reviewing Smurfit Kappa Group (OTCMKTS:SMFKY) & Ranpak (NYSE:PACK)

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

Analyst Recommendations

This is a summary of current ratings and target prices for Ranpak and Smurfit Kappa Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ranpak	1	0	3	0	2.50
Smurfit Kappa Group	0	0	0	0	0.00

Ranpak presently has a consensus price target of $7.00, suggesting a potential upside of 25.74%. Given Ranpak’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Ranpak is more favorable than Smurfit Kappa Group.

Volatility and Risk

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

Institutional and Insider Ownership

85.9% of Ranpak shares are held by institutional investors. Comparatively, 0.0% of Smurfit Kappa Group shares are held by institutional investors. 8.8% of Ranpak shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Ranpak and Smurfit Kappa Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ranpak	-9.09%	-7.18%	-3.41%
Smurfit Kappa Group	N/A	N/A	N/A

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ranpak	$417.90 million	1.14	-$38.30 million	($0.44)	-12.65
Smurfit Kappa Group	$12.20 billion	0.98	$820.38 million	N/A	N/A

Smurfit Kappa Group has higher revenue and earnings than Ranpak.

Summary

Ranpak beats Smurfit Kappa Group on 7 of the 12 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 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.