Silgan (NYSE:SLGN) & Ranpak (NYSE:PACK) Critical Review

Ranpak (NYSE:PACK) and Silgan (NYSE:SLGN) are both materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ranpak	$395.00 million	0.83	-$38.30 million	($0.44)	-8.72
Silgan	$6.48 billion	0.63	$288.40 million	$2.55	15.12

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

Insider and Institutional Ownership

85.9% of Ranpak shares are owned by institutional investors. Comparatively, 70.3% of Silgan shares are owned by institutional investors. 8.8% of Ranpak shares are owned by company insiders. Comparatively, 1.1% of Silgan shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Ranpak and Silgan, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ranpak	1	0	3	0	2.50
Silgan	0	3	8	1	2.83

Ranpak currently has a consensus target price of $7.00, indicating a potential upside of 82.53%. Silgan has a consensus target price of $54.00, indicating a potential upside of 40.06%. Given Ranpak’s higher probable upside, equities analysts clearly believe Ranpak is more favorable than Silgan.

Profitability

This table compares Ranpak and Silgan’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%
Silgan	4.05%	16.74%	4.09%

Risk and Volatility

Ranpak has a beta of 3.1, meaning that its stock price is 210% more volatile than the S&P 500. Comparatively, Silgan has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Summary

Silgan beats Ranpak on 10 of the 15 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 Silgan

Silgan Holdings Inc., together with its subsidiaries, manufactures and sells rigid packaging solutions for consumer goods products in the United States and internationally. It operates through three segments: Dispensing and Specialty Closures, Metal Containers, and Custom Containers. The Dispensing and Specialty Closures segment offers a range of metal and plastic closures, and dispensing systems for food, beverage, health care, garden, home, personal care, beauty products, and hard surface cleaning products, as well as capping/sealing equipment and detection systems. The Metal Containers segment manufactures and sells steel and aluminum containers for food products, such as pet food, vegetables, soups, proteins, fruits, and other miscellaneous food products, as well as general line metal containers primarily for chemicals. The Custom Containers segment manufactures and sells custom designed and stock plastic containers for use in personal care and health care; food and beverage; household and industrial chemical; pharmaceutical; pet food and care; agricultural; automotive. This segment also provides thermoformed barrier and non-barrier bowls, and trays for food products, such as soups, other ready-to-eat meals, and pet food products; and plastic closures, caps, sifters, and fitments, as well as thermoformed tubs for food, household, and personal care products. The company markets its products primarily through direct sales force, as well as through a network of distributors, and an online shopping catalog. The company was founded in 1987 and is headquartered in Stamford, Connecticut.