Head-To-Head Survey: Nine Dragons Paper (OTCMKTS:NDGPY) versus Ranpak (NYSE:PACK)

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

Volatility & Risk

Nine Dragons Paper has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500. Comparatively, Ranpak has a beta of 2.69, suggesting that its share price is 169% more volatile than the S&P 500.

Valuation & Earnings

This table compares Nine Dragons Paper and Ranpak”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nine Dragons Paper	$8.25 billion	0.24	$107.12 million	N/A	N/A
Ranpak	$368.90 million	0.83	-$21.50 million	($0.26)	-13.98

Nine Dragons Paper has higher revenue and earnings than Ranpak.

Profitability

This table compares Nine Dragons Paper and Ranpak’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
Ranpak	-5.74%	-3.87%	-1.92%

Institutional & Insider Ownership

85.9% of Ranpak shares are held by institutional investors. 8.4% of Ranpak shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Nine Dragons Paper and Ranpak, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nine Dragons Paper	0	0	0	0	0.00
Ranpak	0	2	1	0	2.33

Ranpak has a consensus price target of $5.50, suggesting a potential upside of 51.31%. Given Ranpak’s stronger consensus rating and higher probable upside, analysts clearly believe Ranpak is more favorable than Nine Dragons Paper.

Summary

Ranpak beats Nine Dragons Paper on 7 of the 12 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 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.