Ranpak (NYSE:PACK) & CCL Industries (OTCMKTS:CCDBF) Critical Comparison

CCL Industries (OTCMKTS:CCDBF) and Ranpak (NYSE:PACK) are both materials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for CCL Industries and Ranpak, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CCL Industries	0	1	4	0	2.80
Ranpak	1	0	3	0	2.50

Ranpak has a consensus price target of $7.00, indicating a potential upside of 37.99%. Given Ranpak’s higher possible upside, analysts plainly believe Ranpak is more favorable than CCL Industries.

Profitability

This table compares CCL Industries and Ranpak’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CCL Industries	10.27%	14.78%	8.02%
Ranpak	-9.09%	-7.18%	-3.41%

Institutional & Insider Ownership

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

Earnings and Valuation

This table compares CCL Industries and Ranpak”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CCL Industries	$5.48 billion	1.92	$574.28 million	$2.59	25.86
Ranpak	$417.90 million	1.04	-$38.30 million	($0.44)	-11.53

CCL Industries has higher revenue and earnings than Ranpak. Ranpak is trading at a lower price-to-earnings ratio than CCL Industries, indicating that it is currently the more affordable of the two stocks.

Summary

CCL Industries beats Ranpak on 10 of the 13 factors compared between the two stocks.

About CCL Industries

CCL Industries Inc. manufactures and sells labels, consumer printable media products, technology-driven label solutions, polymer banknote substrates, and specialty films. It operates through CCL, Avery, Checkpoint, and Innovia segments. The CCL segment converts pressure sensitive and extruded film materials for a range of decorative, instructional, security, and functional applications for government institutions and global customers in consumer packaging, healthcare, chemicals, consumer durables, electronic device, and automotive markets. The Avery segment supplies labels, specialty converted media, and software solutions to enable short-run digital printing in businesses and homes alongside complementary products sold through distributors, mass-market stores, and e-commerce retailers. The Checkpoint segment engages in developing radio frequency and radio frequency identification-based technology systems for loss prevention and inventory management applications, including labeling and tagging solutions for the retail and apparel industries. The Innovia segment supplies biaxially oriented polypropylene films to customers in the pressure sensitive label materials, flexible packaging, and consumer packaged goods industries. The company operates in Canada, the United States, Puerto Rico, Mexico, Brazil, Chile, Argentina, Europe, Asia, Australia, Africa, and New Zealand. CCL Industries Inc. was founded in 1951 and is headquartered in Toronto, Canada.

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.