WallStSmart

Karat Packaging Inc (KRT)vsSmurfit WestRock plc (SW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Smurfit WestRock plc generates 6566% more annual revenue ($31.18B vs $467.74M). KRT leads profitability with a 6.7% profit margin vs 2.2%. KRT trades at a lower P/E of 17.8x. SW 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

SW

Buy

54

out of 100

Grade: C-

Growth: 5.3Profit: 5.0Value: 7.3Quality: 5.0
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
SWSignificantly Overvalued (-456.2%)

Margin of Safety

-456.2%

Fair Value

$9.04

Current Price

$40.67

$31.63 premium

UndervaluedFair: $9.04Overvalued

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

SW2 strengths · Avg: 10.0/10
PEG RatioValuation
0.2610/10

Growing faster than its price suggests

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

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

SW4 concerns · Avg: 3.5/10
P/E RatioValuation
30.0x4/10

Moderate valuation

Revenue GrowthGrowth
0.5%4/10

0.5% revenue growth

Return on EquityProfitability
3.9%3/10

ROE of 3.9% — below average capital efficiency

Profit MarginProfitability
2.2%3/10

2.2% margin — thin

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 : SW

The strongest argument for SW centers on PEG Ratio, Price/Book. PEG of 0.26 suggests the stock is reasonably priced for its growth.

Bear Case : KRT

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

Bear Case : SW

The primary concerns for SW are P/E Ratio, Revenue Growth, Return on Equity. Thin 2.2% margins leave little buffer for downturns.

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.

SW generates stronger free cash flow (612M), providing more financial flexibility.

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

Bottom Line

SW scores higher overall (54/100 vs 52/100). 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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Smurfit WestRock plc

CONSUMER CYCLICAL · PACKAGING & CONTAINERS · USA

Smurfit Westrock Plc, manufactures, distributes, and sells containerboard, corrugated containers, and other paper-based packaging products in Ireland and internationally. The company is headquartered in Dublin, Ireland.

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