Ranpak (NYSE:PACK – Get Free Report) and Crown (NYSE:CCK – Get Free Report) are both materials companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.
Profitability
This table compares Ranpak and Crown’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ranpak | -8.28% | -6.65% | -3.15% |
| Crown | 5.78% | 27.41% | 6.51% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Ranpak and Crown, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ranpak | 1 | 1 | 2 | 0 | 2.25 |
| Crown | 0 | 6 | 11 | 0 | 2.65 |
Ranpak presently has a consensus target price of $3.50, suggesting a potential upside of 8.53%. Crown has a consensus target price of $128.47, suggesting a potential upside of 5.73%. Given Ranpak’s higher probable upside, analysts clearly believe Ranpak is more favorable than Crown.
Risk and Volatility
Ranpak has a beta of 3.11, meaning that its stock price is 211% more volatile than the S&P 500. Comparatively, Crown has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.
Institutional & Insider Ownership
85.9% of Ranpak shares are held by institutional investors. Comparatively, 90.9% of Crown shares are held by institutional investors. 8.8% of Ranpak shares are held by company insiders. Comparatively, 0.9% of Crown shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Ranpak and Crown”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ranpak | $395.00 million | 0.70 | -$38.30 million | ($0.40) | -8.06 |
| Crown | $12.37 billion | 1.06 | $738.00 million | $7.18 | 16.92 |
Crown has higher revenue and earnings than Ranpak. Ranpak is trading at a lower price-to-earnings ratio than Crown, indicating that it is currently the more affordable of the two stocks.
Summary
Crown beats Ranpak on 11 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 Crown
Crown Holdings, Inc., together with its subsidiaries, engages in the packaging business in the United States and internationally. It operates through Americas Beverage, European Beverage, Asia Pacific, and Transit Packaging segments. The company manufactures and sells recyclable aluminum beverage cans and ends, glass bottles, steel crowns, aluminum caps, non-beverage cans, and aerosol cans and closures. It also provides manual, semi-automatic, and automatic equipment and tools to apply and remove consumables, such as straps and films; protective solutions, including airbags, edge protectors, and honeycomb products; and steel and plastic consumables include steel strap, plastic strap, industrial film, and other related products. The company serves food industries, including pet food, personal care, household, and industrial products. Crown Holdings, Inc. was founded in 1892 and is headquartered in Yardley, Pennsylvania.
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