WallStSmart

Packaging Corp of America (PKG)vsSonoco Products Company (SON)

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Smart Verdict

WallStSmart Research — data-driven comparison

Packaging Corp of America generates 33% more annual revenue ($9.82B vs $7.37B). PKG leads profitability with a 7.4% profit margin vs -3.1%. SON appears more attractively valued with a PEG of 0.20. PKG earns a higher WallStSmart Score of 60/100 (C).

PKG

Buy

60

out of 100

Grade: C

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

SON

Hold

49

out of 100

Grade: D+

Growth: 3.3Profit: 6.0Value: 7.0Quality: 5.0
Piotroski: 5/9Altman Z: 1.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PKGSignificantly Overvalued (-82.1%)

Margin of Safety

-82.1%

Fair Value

$134.28

Current Price

$258.64

$124.36 premium

UndervaluedFair: $134.28Overvalued
SONUndervalued (+2.7%)

Margin of Safety

+2.7%

Fair Value

$52.85

Current Price

$50.21

$2.64 discount

UndervaluedFair: $52.85Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PKG0 strengths · Avg: 0/10

No standout strengths identified

SON3 strengths · Avg: 9.0/10
PEG RatioValuation
0.2010/10

Growing faster than its price suggests

Return on EquityProfitability
28.9%9/10

Every $100 of equity generates 29 in profit

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

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

SON4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.704/10

Distress zone — elevated risk

Debt/EquityHealth
1.623/10

Elevated debt levels

Revenue GrowthGrowth
-4.2%2/10

Revenue declined 4.2%

EPS GrowthGrowth
-78.8%2/10

Earnings declined 78.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : PKG

Revenue growth of 12.5% demonstrates continued momentum.

Bull Case : SON

The strongest argument for SON centers on PEG Ratio, Return on Equity, Price/Book. PEG of 0.20 suggests the stock is reasonably priced for its growth.

Bear Case : PKG

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

Bear Case : SON

The primary concerns for SON are Altman Z-Score, Debt/Equity, Revenue Growth. Debt-to-equity of 1.62 is elevated, increasing financial risk.

Key Dynamics to Monitor

PKG profiles as a value stock while SON is a turnaround play — different risk/reward profiles.

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.

SON generates stronger free cash flow (234M), providing more financial flexibility.

Bottom Line

PKG scores higher overall (60/100 vs 49/100) and 12.5% revenue growth. 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.

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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Sonoco Products Company

CONSUMER CYCLICAL · PACKAGING & CONTAINERS · USA

Sonoco Products Company manufactures and sells industrial and consumer packaging products in North and South America, Europe, Australia, and Asia. The company is headquartered in Hartsville, South Carolina.

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