WallStSmart

International Paper (IP)vsKarat Packaging Inc (KRT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

International Paper generates 4806% more annual revenue ($24.20B vs $493.38M). KRT leads profitability with a 10.2% profit margin vs -14.2%. KRT earns a higher WallStSmart Score of 53/100 (C-).

IP

Hold

48

out of 100

Grade: D+

Growth: 3.3Profit: 3.0Value: 5.0Quality: 4.5
Piotroski: 2/9Altman Z: 1.03

KRT

Buy

53

out of 100

Grade: C-

Growth: 6.7Profit: 7.0Value: 4.3Quality: 7.5
Piotroski: 3/9Altman Z: 3.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

IPSignificantly Overvalued (-73.3%)

Margin of Safety

-73.3%

Fair Value

$28.39

Current Price

$34.36

$5.97 premium

UndervaluedFair: $28.39Overvalued
KRTSignificantly Overvalued (-25.7%)

Margin of Safety

-25.7%

Fair Value

$20.79

Current Price

$46.94

$26.15 premium

UndervaluedFair: $20.79Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

IP2 strengths · Avg: 9.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

PEG RatioValuation
0.988/10

Growing faster than its price suggests

KRT3 strengths · Avg: 10.0/10
Return on EquityProfitability
30.2%10/10

Every $100 of equity generates 30 in profit

EPS GrowthGrowth
170.4%10/10

Earnings expanding 170.4% YoY

Altman Z-ScoreHealth
3.5410/10

Safe zone — low bankruptcy risk

Areas to Watch

IP4 concerns · Avg: 2.5/10
Operating MarginProfitability
2.3%3/10

Operating margin of 2.3%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-23.8%2/10

ROE of -23.8% — below average capital efficiency

Revenue GrowthGrowth
-2.2%2/10

Revenue declined 2.2%

KRT2 concerns · Avg: 3.0/10
Market CapQuality
$937.99M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : IP

The strongest argument for IP centers on Price/Book, PEG Ratio. PEG of 0.98 suggests the stock is reasonably priced for its growth.

Bull Case : KRT

The strongest argument for KRT centers on Return on Equity, EPS Growth, Altman Z-Score.

Bear Case : IP

The primary concerns for IP are Operating Margin, Piotroski F-Score, Return on Equity.

Bear Case : KRT

The primary concerns for KRT are Market Cap, Piotroski F-Score.

Key Dynamics to Monitor

IP profiles as a turnaround stock while KRT is a value play — different risk/reward profiles.

IP carries more volatility with a beta of 0.88 — expect wider price swings.

KRT is growing revenue faster at 9.9% — sustainability is the question.

KRT generates stronger free cash flow (32M), providing more financial flexibility.

Bottom Line

KRT scores higher overall (53/100 vs 48/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

International Paper

CONSUMER CYCLICAL · PACKAGING & CONTAINERS · USA

The International Paper Company (NYSE: IP) is an American pulp and paper company, the largest such company in the world. The company is headquartered in Memphis, Tennessee.

Karat Packaging Inc

CONSUMER CYCLICAL · PACKAGING & CONTAINERS · USA

Karat Packaging Inc. manufactures and distributes single-use disposable products in plastic, paper, biopolymers, and other compostable forms that are primarily used in restaurants and food service areas. The company is headquartered in Chino, California.

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