WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Packaging Corp of America generates 1822% more annual revenue ($8.99B vs $467.74M). PKG leads profitability with a 8.6% profit margin vs 6.7%. KRT trades at a lower P/E of 17.8x. PKG earns a higher WallStSmart Score of 54/100 (C-).

KRT

Buy

52

out of 100

Grade: C-

Growth: 6.0Profit: 6.5Value: 8.3Quality: 8.0
Piotroski: 3/9Altman Z: 3.57

PKG

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 7.0Value: 7.3Quality: 4.3
Piotroski: 1/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KRTUndervalued (+58.9%)

Margin of Safety

+58.9%

Fair Value

$63.52

Current Price

$28.17

$35.35 discount

UndervaluedFair: $63.52Overvalued
PKGSignificantly Overvalued (-319.6%)

Margin of Safety

-319.6%

Fair Value

$58.28

Current Price

$213.36

$155.08 premium

UndervaluedFair: $58.28Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KRT4 strengths · Avg: 8.8/10
Altman Z-ScoreHealth
3.5710/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
20.5%9/10

Every $100 of equity generates 21 in profit

P/E RatioValuation
17.8x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
21.2%8/10

Earnings expanding 21.2% YoY

PKG0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

KRT3 concerns · Avg: 3.0/10
Market CapQuality
$556.96M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.7%3/10

6.7% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PKG3 concerns · Avg: 3.0/10
PEG RatioValuation
1.634/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

EPS GrowthGrowth
-56.5%2/10

Earnings declined 56.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : KRT

The strongest argument for KRT centers on Altman Z-Score, Return on Equity, P/E Ratio. Revenue growth of 13.7% demonstrates continued momentum.

Bull Case : PKG

Revenue growth of 10.1% demonstrates continued momentum.

Bear Case : KRT

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

Bear Case : PKG

The primary concerns for PKG are PEG Ratio, Piotroski F-Score, EPS Growth.

Key Dynamics to Monitor

KRT carries more volatility with a beta of 1.06 — expect wider price swings.

KRT is growing revenue faster at 13.7% — sustainability is the question.

PKG generates stronger free cash flow (128M), providing more financial flexibility.

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

Bottom Line

PKG scores higher overall (54/100 vs 52/100) and 10.1% revenue growth. KRT offers better value entry with a 58.9% margin of safety. 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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