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

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

Volatility and Risk

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

Analyst Ratings

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

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

Karat Packaging currently has a consensus target price of $26.50, suggesting a potential upside of 15.92%. Given Karat Packaging’s higher possible upside, equities analysts clearly believe Karat Packaging is more favorable than Nine Dragons Paper.

Earnings and Valuation

This table compares Karat Packaging and Nine Dragons Paper”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Karat Packaging	$422.63 million	1.09	$29.98 million	$1.50	15.24
Nine Dragons Paper	$8.77 billion	N/A	$300.42 million	N/A	N/A

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

Institutional & Insider Ownership

25.2% of Karat Packaging shares are owned by institutional investors. 66.1% of Karat Packaging shares are owned by company 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.

Profitability

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

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

Summary

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

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.

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.