Ranpak (NYSE:PACK) and United States Steel (NYSE:X) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.
Analyst Ratings
This is a summary of current ratings and price targets for Ranpak and United States Steel, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Ranpak | 0 | 0 | 0 | 0 | N/A |
United States Steel | 2 | 9 | 1 | 0 | 1.92 |
United States Steel has a consensus price target of $15.00, indicating a potential downside of 29.64%. Given United States Steel's higher probable upside, analysts clearly believe United States Steel is more favorable than Ranpak.
Institutional and Insider Ownership
81.3% of Ranpak shares are held by institutional investors. Comparatively, 60.4% of United States Steel shares are held by institutional investors. 7.1% of Ranpak shares are held by company insiders. Comparatively, 1.7% of United States Steel shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Ranpak and United States Steel's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Ranpak | -7.54% | -4.13% | -1.94% |
United States Steel | -16.25% | -18.78% | -6.21% |
Earnings & Valuation
This table compares Ranpak and United States Steel's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Ranpak | $269.50 million | 5.34 | $-36,200,000.00 | N/A | N/A |
United States Steel | $12.94 billion | 0.44 | $-630,000,000.00 | $0.09 | 236.89 |
Ranpak has higher earnings, but lower revenue than United States Steel.
Risk and Volatility
Ranpak has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, United States Steel has a beta of 2.39, indicating that its stock price is 139% more volatile than the S&P 500.
Summary
Ranpak beats United States Steel on 7 of the 12 factors compared between the two stocks.