SIG Group (OTCMKTS:SCBGF) versus Karat Packaging (NASDAQ:KRT) Head-To-Head Review

Karat Packaging (NASDAQ:KRT) and SIG Group (OTCMKTS:SCBGF) are both consumer cyclical companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Karat Packaging and SIG Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Karat Packaging	0	0	3	0	3.00
SIG Group	1	0	0	0	1.00

Karat Packaging currently has a consensus target price of $30.33, indicating a potential upside of 13.06%. Given Karat Packaging’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Karat Packaging is more favorable than SIG Group.

Institutional & Insider Ownership

25.2% of Karat Packaging shares are owned by institutional investors. 71.5% of Karat Packaging shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Karat Packaging and SIG Group’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Karat Packaging	$405.65 million	1.32	$32.47 million	$1.62	16.56
SIG Group	N/A	N/A	N/A	N/A	N/A

Karat Packaging has higher revenue and earnings than SIG Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Karat Packaging	8.00%	22.54%	13.21%
SIG Group	N/A	N/A	N/A

Summary

Karat Packaging beats SIG Group on 9 of the 9 factors compared between the two stocks.

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.

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.