International Paper (NYSE:IP – Get Free Report) and Ranpak (NYSE:PACK – Get Free Report) are both materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.
Profitability
This table compares International Paper and Ranpak’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| International Paper | -14.20% | -1.09% | -0.44% |
| Ranpak | -9.09% | -7.18% | -3.41% |
Valuation and Earnings
This table compares International Paper and Ranpak”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| International Paper | $23.63 billion | 0.75 | -$3.52 billion | ($6.52) | -5.12 |
| Ranpak | $395.00 million | 0.82 | -$38.30 million | ($0.44) | -8.58 |
Ranpak has lower revenue, but higher earnings than International Paper. Ranpak is trading at a lower price-to-earnings ratio than International Paper, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
International Paper has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Ranpak has a beta of 3.14, meaning that its stock price is 214% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for International Paper and Ranpak, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| International Paper | 1 | 3 | 10 | 0 | 2.64 |
| Ranpak | 1 | 0 | 3 | 0 | 2.50 |
International Paper presently has a consensus price target of $46.90, indicating a potential upside of 40.42%. Ranpak has a consensus price target of $7.00, indicating a potential upside of 85.33%. Given Ranpak’s higher possible upside, analysts clearly believe Ranpak is more favorable than International Paper.
Insider & Institutional Ownership
82.0% of International Paper shares are held by institutional investors. Comparatively, 85.9% of Ranpak shares are held by institutional investors. 0.2% of International Paper shares are held by insiders. Comparatively, 8.8% of Ranpak shares are held by 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.
Summary
Ranpak beats International Paper on 8 of the 13 factors compared between the two stocks.
About International Paper
International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others. It sells its products directly to end users and converters, as well as through agents, resellers, and distributors. The company was founded in 1898 and is headquartered in Memphis, Tennessee.
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.
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