Comparing Nine Dragons Paper (OTCMKTS:NDGPY) & Karat Packaging (NASDAQ:KRT)

Nine Dragons Paper (OTCMKTS:NDGPY) and Karat Packaging (NASDAQ:KRT) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Analyst Ratings

This is a summary of current ratings for Nine Dragons Paper and Karat Packaging, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nine Dragons Paper	0	0	0	1	4.00
Karat Packaging	2	3	0	0	1.60

Karat Packaging has a consensus price target of $26.50, indicating a potential upside of 16.48%. Given Karat Packaging’s higher probable upside, analysts plainly believe Karat Packaging is more favorable than Nine Dragons Paper.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nine Dragons Paper	N/A	N/A	N/A
Karat Packaging	6.67%	18.98%	9.98%

Risk and Volatility

Nine Dragons Paper has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500. Comparatively, Karat Packaging has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Valuation and Earnings

This table compares Nine Dragons Paper 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
Nine Dragons Paper	$8.77 billion	N/A	$300.42 million	N/A	N/A
Karat Packaging	$422.63 million	1.08	$29.98 million	$1.50	15.17

Nine Dragons Paper has higher revenue and earnings than Karat Packaging.

Insider & Institutional Ownership

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

Summary

Karat Packaging beats Nine Dragons Paper on 7 of the 11 factors compared between the two stocks.

About Nine Dragons Paper

Nine Dragons Paper (Holdings) Limited, together with its subsidiaries, engages in the production and sale of packaging paper, recycled printing and writing paper, and specialty paper and pulp products in the People's Republic of China. The company offers linerboard products, including kraft, test, white top, and coated linerboards; corrugating medium containerboard products; corrugated cardboard products; carton box products; corrugated sheet products; and coated duplex boards. It also provides recycled printing and writing paper, such as uncoated wood-free paper and office paper; capacitor tissue paper; low and high voltage, ultra-high-voltage transformer coil winding, and heat-resistant insulating paper; and recycled and kraft pulp products. It also operates in Vietnam, Malaysia, and the United States. The company was founded in 1995 and is headquartered in Dongguan, the People's Republic of China. Nine Dragons Paper (Holdings) Limited operates as a subsidiary of Best Result Holdings Limited.

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.