WallStSmart

Karat Packaging Inc (KRT)vsPackaging Corp of America (PKG)

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Smart Verdict

WallStSmart Research — data-driven comparison

Packaging Corp of America generates 1891% more annual revenue ($9.82B vs $493.38M). KRT leads profitability with a 10.2% profit margin vs 7.4%. KRT trades at a lower P/E of 21.2x. PKG earns a higher WallStSmart Score of 60/100 (C).

KRT

Buy

53

out of 100

Grade: C-

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

PKG

Buy

60

out of 100

Grade: C

Growth: 6.0Profit: 7.0Value: 3.3Quality: 5.0
Piotroski: 1/9Altman Z: 2.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KRTSignificantly Overvalued (-22.1%)

Margin of Safety

-22.1%

Fair Value

$21.40

Current Price

$53.40

$32.00 premium

UndervaluedFair: $21.40Overvalued
PKGSignificantly Overvalued (-82.1%)

Margin of Safety

-82.1%

Fair Value

$134.28

Current Price

$248.44

$114.16 premium

UndervaluedFair: $134.28Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

PKG0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

KRT2 concerns · Avg: 3.0/10
Market CapQuality
$1.06B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PKG4 concerns · Avg: 3.5/10
PEG RatioValuation
1.604/10

Expensive relative to growth rate

P/E RatioValuation
31.2x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
7.4%3/10

7.4% margin — thin

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : KRT

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

Bull Case : PKG

Revenue growth of 12.5% demonstrates continued momentum.

Bear Case : KRT

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

Bear Case : PKG

The primary concerns for PKG are PEG Ratio, P/E Ratio, Profit Margin.

Key Dynamics to Monitor

PKG carries more volatility with a beta of 0.77 — expect wider price swings.

PKG is growing revenue faster at 12.5% — sustainability is the question.

PKG generates stronger free cash flow (170M), providing more financial flexibility.

Monitor PACKAGING & CONTAINERS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PKG scores higher overall (60/100 vs 53/100) and 12.5% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

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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Packaging Corp of America

CONSUMER CYCLICAL · PACKAGING & CONTAINERS · USA

Packaging Corporation of America is an American manufacturing company based in Lake Forest, Illinois.

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