Brambles (OTCMKTS:BXBLY) and Karat Packaging (NASDAQ:KRT) Financial Survey

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

Institutional & Insider Ownership

0.0% of Brambles shares are owned by institutional investors. Comparatively, 25.2% of Karat Packaging shares are owned by institutional investors. 66.2% of Karat Packaging shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Brambles and Karat Packaging, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brambles	0	0	0	0	0.00
Karat Packaging	0	3	1	0	2.25

Karat Packaging has a consensus target price of $31.67, suggesting a potential upside of 29.78%. Given Karat Packaging’s stronger consensus rating and higher possible upside, analysts clearly believe Karat Packaging is more favorable than Brambles.

Volatility and Risk

Brambles has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Karat Packaging has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Valuation and Earnings

This table compares Brambles and Karat Packaging”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brambles	$6.67 billion	3.33	$896.00 million	N/A	N/A
Karat Packaging	$422.63 million	1.16	$29.98 million	$1.59	15.35

Brambles has higher revenue and earnings than Karat Packaging.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brambles	N/A	N/A	N/A
Karat Packaging	7.25%	20.26%	10.65%

Dividends

Brambles pays an annual dividend of $0.78 per share and has a dividend yield of 2.4%. Karat Packaging pays an annual dividend of $1.80 per share and has a dividend yield of 7.4%. Karat Packaging pays out 113.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Karat Packaging has raised its dividend for 2 consecutive years. Karat Packaging is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Karat Packaging beats Brambles on 11 of the 15 factors compared between the two stocks.

About Brambles

Brambles Limited operates as a supply-chain logistics company. It operates through CHEP North America and Latin America; CHEP Europe, Middle East, Africa and India; and CHEP Australia, New Zealand and Asia, excluding India segments. The company engages in the pooling of unit-load equipment and associated services, focusing on the outsourced management of pallets, crates, and containers. It serves customers in the fast-moving consumer goods, fresh produce, beverage, retail, and general manufacturing industries. Brambles Limited was founded in 1875 and is based in Sydney, Australia.

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.