Karat Packaging (NASDAQ:KRT) vs. Hudson Technologies (NASDAQ:HDSN) Head-To-Head Comparison

Hudson Technologies (NASDAQ:HDSN) and Karat Packaging (NASDAQ:KRT) are both small-cap industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Insider & Institutional Ownership

71.3% of Hudson Technologies shares are owned by institutional investors. Comparatively, 25.2% of Karat Packaging shares are owned by institutional investors. 1.9% of Hudson Technologies shares are owned by insiders. Comparatively, 57.9% of Karat Packaging shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Hudson Technologies and Karat Packaging, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hudson Technologies	1	3	2	0	2.17
Karat Packaging	1	2	3	0	2.33

Hudson Technologies presently has a consensus target price of $8.62, indicating a potential upside of 66.83%. Karat Packaging has a consensus target price of $47.00, indicating a potential downside of 5.75%. Given Hudson Technologies’ higher probable upside, research analysts clearly believe Hudson Technologies is more favorable than Karat Packaging.

Valuation & Earnings

This table compares Hudson Technologies and Karat Packaging”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hudson Technologies	$246.61 million	0.88	$16.67 million	$0.20	25.85
Karat Packaging	$467.74 million	2.12	$31.48 million	$2.50	19.95

Karat Packaging has higher revenue and earnings than Hudson Technologies. Karat Packaging is trading at a lower price-to-earnings ratio than Hudson Technologies, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Hudson Technologies has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Karat Packaging has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hudson Technologies	3.51%	4.95%	3.81%
Karat Packaging	10.18%	30.62%	16.67%

Summary

Karat Packaging beats Hudson Technologies on 11 of the 14 factors compared between the two stocks.

About Hudson Technologies

Hudson Technologies, Inc., through its subsidiary, Hudson Technologies Company, engages in the provision of solutions to recurring problems within the refrigeration industry in the United States. The company engages in the sale of refrigerant and industrial gas; provision of refrigerant management services consisting primarily of reclamation of refrigerants, re-usable cylinder refurbishment, and hydrostatic testing services; and RefrigerantSide services comprising system decontamination and recovery to remove moisture, oils, and other contaminants. It also offers Chiller Chemistry, which integrates several fluid tests of an operating system and the corresponding laboratory results into an engineering report; Fluid Chemistry, an abbreviated version of Chiller Chemistry, which is designed to quickly identify systems that require further examination; SmartEnergy OPS, a web-based real time continuous monitoring system, for measuring, modifying and improving the efficiency of energy systems, including air conditioning and refrigeration systems, in industrial and commercial applications; and ChillSmart, which combines the system optimization with Chiller Chemistry for providing a snapshot of a packaged chiller's operating efficiency and health. In addition, the company participates in the generation of carbon offset projects. It serves commercial, industrial, and governmental customers, as well as refrigerant wholesalers, distributors, contractors, and refrigeration equipment manufacturers. The company was incorporated in 1991 and is headquartered in Woodcliff Lake, New Jersey.

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.