Ranpak (NYSE:PACK) versus International Paper (NYSE:IP) Head-To-Head Review

International Paper (NYSE:IP) and Ranpak (NYSE:PACK) are both materials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Institutional and Insider Ownership

82.0% of International Paper shares are owned by institutional investors. Comparatively, 85.9% of Ranpak shares are owned by institutional investors. 0.2% of International Paper shares are owned by insiders. Comparatively, 8.8% of Ranpak shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for International Paper and Ranpak, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Paper	1	3	10	0	2.64
Ranpak	1	0	3	0	2.50

International Paper currently has a consensus price target of $46.90, suggesting a potential upside of 40.42%. Ranpak has a consensus price target of $7.00, suggesting a potential upside of 85.33%. Given Ranpak’s higher possible upside, analysts clearly believe Ranpak is more favorable than International Paper.

Earnings and Valuation

This table compares International Paper and Ranpak”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Paper	$23.63 billion	0.75	-$3.52 billion	($6.52)	-5.12
Ranpak	$395.00 million	0.82	-$38.30 million	($0.44)	-8.58

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

Profitability

This table compares International Paper and Ranpak’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Paper	-14.20%	-1.09%	-0.44%
Ranpak	-9.09%	-7.18%	-3.41%

Volatility and Risk

International Paper has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Ranpak has a beta of 3.14, suggesting that its stock price is 214% more volatile than the S&P 500.

Summary

Ranpak beats International Paper on 8 of the 13 factors compared between the two stocks.

About International Paper

International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others. It sells its products directly to end users and converters, as well as through agents, resellers, and distributors. The company was founded in 1898 and is headquartered in Memphis, Tennessee.

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.