Ranpak (NYSE:PACK – Get Free Report) and Sonoco Products (NYSE:SON – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.
Insider and Institutional Ownership
85.9% of Ranpak shares are owned by institutional investors. Comparatively, 77.7% of Sonoco Products shares are owned by institutional investors. 8.7% of Ranpak shares are owned by company insiders. Comparatively, 0.7% of Sonoco Products shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Ranpak and Sonoco Products”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ranpak | $388.10 million | 1.23 | -$21.50 million | ($0.44) | -12.86 |
| Sonoco Products | $5.31 billion | 0.85 | $163.95 million | $6.30 | 7.25 |
Sonoco Products has higher revenue and earnings than Ranpak. Ranpak is trading at a lower price-to-earnings ratio than Sonoco Products, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Ranpak and Sonoco Products’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ranpak | -9.48% | -6.79% | -3.28% |
| Sonoco Products | 8.82% | 20.49% | 4.74% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Ranpak and Sonoco Products, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ranpak | 1 | 1 | 2 | 0 | 2.25 |
| Sonoco Products | 1 | 3 | 5 | 0 | 2.44 |
Ranpak presently has a consensus price target of $7.50, suggesting a potential upside of 32.56%. Sonoco Products has a consensus price target of $55.71, suggesting a potential upside of 21.94%. Given Ranpak’s higher possible upside, research analysts clearly believe Ranpak is more favorable than Sonoco Products.
Volatility & Risk
Ranpak has a beta of 2.76, suggesting that its share price is 176% more volatile than the S&P 500. Comparatively, Sonoco Products has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.
Summary
Sonoco Products beats Ranpak on 9 of the 14 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 Sonoco Products
Sonoco Products Company, together with its subsidiaries, designs, develops, manufactures, and sells various engineered and sustainable packaging products in North and South America, Europe, Australia, and Asia. The company operates Consumer Packaging and Industrial Paper Packaging segments. The Consumer Packaging segment offers round and shaped rigid paper, steel, and plastic containers; metal and peelable membrane ends, closures, and components; thermoformed plastic trays and enclosures; and high-barrier flexible packaging products. The Industrial Paper Packaging segment provides paperboard tubes, cones, and cores; paper-based protective packaging products; and uncoated recycled paperboard products. It also offers various packaging materials, including plastic, paper, foam, and other specialty materials. Sonoco Products Company sells its products in various markets, which include paper, textile, film, food, packaging, construction, and wire and cable. The company was founded in 1899 and is headquartered in Hartsville, South Carolina.
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