Analyzing Ranpak (NYSE:PACK) and Sealed Air (NYSE:SEE)

Ranpak (NYSE:PACK) and Sealed Air (NYSE:SEE) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Institutional & Insider Ownership

85.9% of Ranpak shares are owned by institutional investors. Comparatively, 94.4% of Sealed Air shares are owned by institutional investors. 8.7% of Ranpak shares are owned by insiders. Comparatively, 0.4% of Sealed Air shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Ranpak has a beta of 2.69, suggesting that its stock price is 169% more volatile than the S&P 500. Comparatively, Sealed Air has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Profitability

This table compares Ranpak and Sealed Air’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ranpak	-5.74%	-3.87%	-1.92%
Sealed Air	5.55%	65.49%	6.50%

Valuation and Earnings

This table compares Ranpak and Sealed Air”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ranpak	$368.90 million	0.85	-$21.50 million	($0.26)	-14.31
Sealed Air	$5.39 billion	0.89	$264.70 million	$2.02	16.11

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Ranpak and Sealed Air, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ranpak	0	2	1	0	2.33
Sealed Air	0	4	7	1	2.75

Ranpak presently has a consensus target price of $5.50, suggesting a potential upside of 47.85%. Sealed Air has a consensus target price of $38.00, suggesting a potential upside of 16.74%. Given Ranpak’s higher possible upside, equities research analysts clearly believe Ranpak is more favorable than Sealed Air.

Summary

Sealed Air beats Ranpak on 12 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 Sealed Air

Sealed Air Corporation provides packaging solutions in the Americas, Europe, the Middle East, Africa, Asia, Australia, and New Zealand. It operates through two segments, Food and Protective. The Food segment offers integrated packaging materials and automation equipment solutions to provide food safety, shelf life extension, reduce food waste, automate processes, and optimize total cost for food processors in the fresh red meat, smoked and processed meats, poultry, seafood, plant-based, fluids and liquids and cheese markets under the CRYOVAC, CRYOVAC Grip & Tear, CRYOVAC Darfresh, LIQUIBOX, Simple Steps, and Optidure brands. This segment sells its solutions directly to customers through its sales, marketing, and customer service personnel. The Protective segment provides shrink films, bagging systems, foam, inflatable, and suspension and retention packaging solutions to protect goods to e-commerce, consumer goods, pharmaceutical and medical devices, and industrial manufacturing markets under the SEALED AIR, BUBBLE WRAP, AUTOBAG, Instapak, and Korrvu brands. This segment sells its solutions through supply distributors, as well as directly to fabricators, original equipment manufacturers, contract manufacturers, logistics partners, and e-commerce/fulfillment operations. The company was incorporated in 1960 and is headquartered in Charlotte, North Carolina.