Head-To-Head Analysis: Karat Packaging (NASDAQ:KRT) vs. ZKH Group (NYSE:ZKH)

Karat Packaging (NASDAQ:KRT) and ZKH Group (NYSE:ZKH) are both small-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.

Earnings & Valuation

This table compares Karat Packaging and ZKH Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Karat Packaging	$467.74 million	2.07	$31.48 million	$2.50	19.38
ZKH Group	$1.29 billion	0.28	-$19.44 million	($0.08)	-35.30

Karat Packaging has higher earnings, but lower revenue than ZKH Group. ZKH Group is trading at a lower price-to-earnings ratio than Karat Packaging, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

25.2% of Karat Packaging shares are owned by institutional investors. Comparatively, 9.5% of ZKH Group shares are owned by institutional investors. 57.9% of Karat Packaging shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Karat Packaging has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, ZKH Group has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.

Profitability

This table compares Karat Packaging and ZKH Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Karat Packaging	10.18%	31.42%	17.04%
ZKH Group	-0.90%	-2.80%	-1.30%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Karat Packaging and ZKH Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Karat Packaging	1	2	3	0	2.33
ZKH Group	1	0	0	0	1.00

Karat Packaging presently has a consensus price target of $36.50, suggesting a potential downside of 24.67%. Given Karat Packaging’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Karat Packaging is more favorable than ZKH Group.

Summary

Karat Packaging beats ZKH Group on 13 of the 14 factors compared between the two stocks.

About Karat Packaging

Karat Packaging Inc., together with its subsidiaries, engages in the manufacture and distribution of single-use disposable products in plastic, paper, biopolymer-based, and other compostable forms used in various restaurant and foodservice settings. It provides food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves, and other products under the Karat Earth brand. The company also provides new product development, design, printing, and logistics services. It offers its products to national and regional distributors, restaurant chains, retail establishments, and online customers. The company was founded in 2000 and is based in Chino, California.

About ZKH Group

ZKH Group Limited develops and operates a maintenance, repair, and operating (MRO) products trading and service platform that offers spare parts, chemicals, manufacturing parts, general consumables, and office supplies in the People’s Republic of China. The company provides MRO procurement and management services; digitalized MRO procurement solutions; and logistics and warehousing services. It also engages in the production and sale of intelligent warehousing equipment. ZKH Group Limited was founded in 1998 and is based in Shanghai, the People’s Republic of China.