WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Packaging Corp of America generates 1832% more annual revenue ($9.53B vs $493.38M). KRT leads profitability with a 10.2% profit margin vs 7.3%. KRT trades at a lower P/E of 19.0x. KRT earns a higher WallStSmart Score of 53/100 (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

52

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 3.3Quality: 6.0
Piotroski: 1/9Altman Z: 2.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KRTSignificantly Overvalued (-25.7%)

Margin of Safety

-25.7%

Fair Value

$20.79

Current Price

$46.94

$26.15 premium

UndervaluedFair: $20.79Overvalued
PKGSignificantly Overvalued (-89.6%)

Margin of Safety

-89.6%

Fair Value

$129.00

Current Price

$234.40

$105.40 premium

UndervaluedFair: $129.00Overvalued

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
$937.99M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PKG4 concerns · Avg: 3.5/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

P/E RatioValuation
30.1x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
7.3%3/10

7.3% 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 14.7% 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 0.80 — expect wider price swings.

PKG is growing revenue faster at 14.7% — 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

KRT scores higher overall (53/100 vs 52/100). 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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