Karat Packaging (NASDAQ:KRT) versus SIG Group (OTCMKTS:SCBGF) Financial Analysis

Karat Packaging (NASDAQ:KRT) and SIG Group (OTCMKTS:SCBGF) are both industrial products companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Profitability

This table compares Karat Packaging and SIG Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Karat Packaging	8.00%	22.54%	13.21%
SIG Group	N/A	N/A	N/A

Institutional and Insider Ownership

25.2% of Karat Packaging shares are held by institutional investors. 71.5% of Karat Packaging shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Karat Packaging and SIG Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Karat Packaging	$405.65 million	1.34	$32.47 million	$1.62	16.86
SIG Group	N/A	N/A	N/A	N/A	N/A

Karat Packaging has higher revenue and earnings than SIG Group.

Analyst Recommendations

This is a summary of current recommendations for Karat Packaging and SIG Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Karat Packaging	0	0	3	0	3.00
SIG Group	1	0	0	0	1.00

Karat Packaging presently has a consensus price target of $30.33, indicating a potential upside of 11.07%. Given Karat Packaging’s stronger consensus rating and higher possible upside, analysts clearly believe Karat Packaging is more favorable than SIG Group.

Summary

Karat Packaging beats SIG Group on 9 of the 9 factors compared between the two stocks.

About Karat Packaging

Karat Packaging Inc., together with its subsidiaries, engages in the manufacture and distribution of single-use disposable products in plastic, paper, biopolymer-based, and other compostable forms used in various restaurant and foodservice settings. It provides food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves, and other products under the Karat Earth brand. The company also provides new product development, design, printing, and logistics services. It offers its products to national and regional distributors, restaurant chains, retail establishments, and online customers. The company was founded in 2000 and is based in Chino, California.

About SIG Group

SIG Group AG provides aseptic carton packaging systems and solutions for beverage and liquid food products. The company provides aseptic carton filling lines, aseptic carton sleeves and closures, bag-in-box, and spouted pouch, as well as spare parts, maintenance, digital, add-on, training, and other services. It primarily operates in Europe, the Middle East, Africa, the Asia Pacific, and the Americas. The company was formerly known as SIG Combibloc Group AG and changed its name to SIG Group AG in April 2022. The company was founded in 1853 and is headquartered in Neuhausen am Rheinfall, Switzerland.