Contrasting Crown (NYSE:CCK) & Ranpak (NYSE:PACK)

Ranpak (NYSE:PACK) and Crown (NYSE:CCK) are both materials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends 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%

Insider and Institutional 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 insiders. Comparatively, 0.9% of Crown shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Ranpak and Crown, as reported by MarketBeat.com.

	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, indicating a potential downside of 2.34%. Crown has a consensus target price of $128.47, indicating a potential upside of 4.18%. Given Crown’s stronger consensus rating and higher possible upside, analysts clearly believe Crown is more favorable than Ranpak.

Risk and Volatility

Ranpak has a beta of 3.11, indicating that its share price is 211% more volatile than the S&P 500. Comparatively, Crown has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

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	0.78	-$38.30 million	($0.40)	-8.96
Crown	$12.37 billion	1.08	$738.00 million	$7.18	17.18

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 12 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.