Head-To-Head Analysis: Ranpak (NYSE:PACK) versus RPC Group (OTCMKTS:RPCGF)

RPC Group (OTCMKTS:RPCGF) and Ranpak (NYSE:PACK) are both materials companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.

Volatility & Risk

RPC Group has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500. Comparatively, Ranpak has a beta of 3.14, indicating that its stock price is 214% more volatile than the S&P 500.

Profitability

This table compares RPC Group and Ranpak’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RPC Group	N/A	N/A	N/A
Ranpak	-9.09%	-7.18%	-3.41%

Valuation and Earnings

This table compares RPC Group and Ranpak”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RPC Group	$4.97 billion	0.85	$336.18 million	N/A	N/A
Ranpak	$417.90 million	1.13	-$38.30 million	($0.44)	-12.51

RPC Group has higher revenue and earnings than Ranpak.

Insider and Institutional Ownership

85.9% of Ranpak shares are held by institutional investors. 8.8% of Ranpak shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for RPC Group and Ranpak, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RPC Group	0	0	0	0	0.00
Ranpak	1	0	3	0	2.50

Ranpak has a consensus target price of $7.00, suggesting a potential upside of 27.16%. Given Ranpak’s stronger consensus rating and higher probable upside, analysts plainly believe Ranpak is more favorable than RPC Group.

Summary

Ranpak beats RPC Group on 7 of the 12 factors compared between the two stocks.

About RPC Group

RPC Group Plc operates as a plastic product design and engineering company worldwide. It operates through two segments, Packaging and Non-Packaging. The Packaging segment designs plastic packaging for end markets, including the food, beverage, personal care, and healthcare markets; and designs and manufactures other plastic products, such as containers for surface coatings comprising paint pots and vaping accessories. It sells its products directly to the brands, as well as to retailers or fillers. The Non-Packaging segment designs and manufactures a range of plastic products that include temporary storage systems for waste and recycling; and technical components for the automotive and heavy vehicles industries. It also makes moulds, which are used to make plastic components and packaging products. This segment sells its products to intermediaries. The company was founded in 1991 and is headquartered in Rushden, the United Kingdom.

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.