SIG Group (OTCMKTS:SCBGF – Get Free Report) and Karat Packaging (NASDAQ:KRT – Get Free Report) are both consumer cyclical companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Insider and Institutional Ownership
25.2% of Karat Packaging shares are owned by institutional investors. 71.5% of Karat Packaging shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares SIG Group and Karat Packaging’s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
SIG Group | N/A | N/A | N/A | N/A | N/A |
Karat Packaging | $405.65 million | 1.33 | $32.47 million | $1.62 | 16.70 |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for SIG Group and Karat Packaging, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
SIG Group | 1 | 0 | 0 | 0 | 1.00 |
Karat Packaging | 0 | 0 | 3 | 0 | 3.00 |
Karat Packaging has a consensus price target of $30.33, suggesting a potential upside of 12.14%. Given Karat Packaging’s stronger consensus rating and higher possible upside, analysts plainly believe Karat Packaging is more favorable than SIG Group.
Profitability
This table compares SIG Group and Karat Packaging’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
SIG Group | N/A | N/A | N/A |
Karat Packaging | 8.00% | 22.54% | 13.21% |
Summary
Karat Packaging beats SIG Group on 9 of the 9 factors compared between the two stocks.
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.
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.
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