Critical Comparison: O-I Glass (NYSE:OI) versus Ranpak (NYSE:PACK)

Ranpak (NYSE:PACK) and O-I Glass (NYSE:OI) are both small-cap materials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.

Profitability

This table compares Ranpak and O-I Glass’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ranpak	-8.28%	-6.61%	-3.14%
O-I Glass	-18.89%	3.74%	0.43%

Insider and Institutional Ownership

85.9% of Ranpak shares are held by institutional investors. Comparatively, 97.2% of O-I Glass shares are held by institutional investors. 8.8% of Ranpak shares are held by insiders. Comparatively, 1.0% of O-I Glass shares are held by 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 Ratings

This is a breakdown of recent ratings and recommmendations for Ranpak and O-I Glass, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ranpak	1	1	2	0	2.25
O-I Glass	2	4	3	0	2.11

Ranpak presently has a consensus price target of $3.50, suggesting a potential upside of 9.34%. O-I Glass has a consensus price target of $8.81, suggesting a potential upside of 69.31%. Given O-I Glass’ higher probable upside, analysts plainly believe O-I Glass is more favorable than Ranpak.

Valuation and Earnings

This table compares Ranpak and O-I Glass”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ranpak	$395.00 million	0.69	-$38.30 million	($0.40)	-8.00
O-I Glass	$6.33 billion	0.13	-$129.00 million	($7.79)	-0.67

Ranpak has higher earnings, but lower revenue than O-I Glass. Ranpak is trading at a lower price-to-earnings ratio than O-I Glass, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Ranpak has a beta of 3.11, meaning that its stock price is 211% more volatile than the S&P 500. Comparatively, O-I Glass has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

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 O-I Glass

O-I Glass, Inc., through its subsidiaries, engages in the manufacture and sale of glass containers to food and beverage manufacturers primarily in the Americas, Europe, and internationally. The company produces glass containers for alcoholic beverages, including beer, flavored malt beverages, spirits, and wine. It is also involved in the production of glass packaging for various food items, soft drinks, tea, juices, and pharmaceuticals. In addition, the company offers glass containers in a range of sizes, shapes, and colors. It sells its products directly to customers under annual or multi-year supply agreements, as well as through distributors. O-I Glass, Inc. was founded in 1903 and is based in Perrysburg, Ohio.