Analyzing Ranpak (NYSE:PACK) and AptarGroup (NYSE:ATR)

Ranpak (NYSE:PACK) and AptarGroup (NYSE:ATR) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Earnings and Valuation

This table compares Ranpak and AptarGroup”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ranpak	$368.90 million	1.10	-$21.50 million	($0.42)	-11.50
AptarGroup	$3.58 billion	2.57	$374.54 million	$5.81	24.03

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

Risk and Volatility

Ranpak has a beta of 2.7, suggesting that its stock price is 170% more volatile than the S&P 500. Comparatively, AptarGroup has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Ranpak and AptarGroup, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ranpak	0	1	2	0	2.67
AptarGroup	0	1	4	1	3.00

Ranpak currently has a consensus price target of $5.75, indicating a potential upside of 19.05%. AptarGroup has a consensus price target of $174.60, indicating a potential upside of 25.08%. Given AptarGroup’s stronger consensus rating and higher probable upside, analysts plainly believe AptarGroup is more favorable than Ranpak.

Institutional and Insider Ownership

85.9% of Ranpak shares are held by institutional investors. Comparatively, 88.5% of AptarGroup shares are held by institutional investors. 8.4% of Ranpak shares are held by insiders. Comparatively, 0.7% of AptarGroup shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Ranpak and AptarGroup’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ranpak	-9.06%	-6.29%	-3.07%
AptarGroup	10.84%	15.39%	8.60%

Summary

AptarGroup beats Ranpak on 13 of the 15 factors compared between the two stocks.

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.

About AptarGroup

AptarGroup, Inc. designs and manufactures a range of drug delivery, consumer product dispensing, and active material science solutions and services for the pharmaceutical, beauty, personal care, home care, and food and beverage markets. The company operates through Aptar Pharma, Aptar Beauty, and Aptar Closures segments. It also provides pumps for nasal allergy treatments; and metered dose inhaler valves for respiratory ailments, such as asthma and chronic obstructive pulmonary diseases; elastomer for injectable primary packaging components; and active material science solutions. In addition, the company offers dispensing pumps, closures, elastomeric components, and aerosol valves to the digital health solutions. It primarily sells its products and services in Asia, Europe, Latin America, and North America. AptarGroup, Inc. was incorporated in 1992 and is headquartered in Crystal Lake, Illinois.