Packaging Corporation of America (NYSE:PKG) versus Nine Dragons Paper (OTCMKTS:NDGPY) Head-To-Head Comparison

Packaging Corporation of America (NYSE:PKG) and Nine Dragons Paper (OTCMKTS:NDGPY) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

89.8% of Packaging Corporation of America shares are held by institutional investors. 1.5% of Packaging Corporation of America shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Packaging Corporation of America and Nine Dragons Paper, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Packaging Corporation of America	0	4	1	1	2.50
Nine Dragons Paper	0	0	0	0	0.00

Packaging Corporation of America presently has a consensus target price of $211.80, indicating a potential upside of 11.71%. Given Packaging Corporation of America’s stronger consensus rating and higher probable upside, analysts plainly believe Packaging Corporation of America is more favorable than Nine Dragons Paper.

Volatility & Risk

Packaging Corporation of America has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Nine Dragons Paper has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500.

Valuation & Earnings

This table compares Packaging Corporation of America and Nine Dragons Paper”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Packaging Corporation of America	$8.38 billion	2.03	$805.10 million	$9.56	19.83
Nine Dragons Paper	$8.25 billion	0.24	$107.12 million	N/A	N/A

Packaging Corporation of America has higher revenue and earnings than Nine Dragons Paper.

Profitability

This table compares Packaging Corporation of America and Nine Dragons Paper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Packaging Corporation of America	10.09%	20.08%	9.77%
Nine Dragons Paper	N/A	N/A	N/A

Summary

Packaging Corporation of America beats Nine Dragons Paper on 13 of the 13 factors compared between the two stocks.

About Packaging Corporation of America

Packaging Corporation of America engages in the production of container products. It operates through the following segments: Packaging, Paper, and Corporate and Other. The Packaging segment offers a variety of corrugated packaging products, such as conventional shipping containers. The Paper segment manufactures and sells a range of papers, including communication-based papers, and pressure sensitive papers. The Corporate and Other segment focuses on transportation assets, such as rail cars, and trucks. The company was founded in 1959 and is headquartered in Lake Forest, IL.

About Nine Dragons Paper

Nine Dragons Paper (Holdings) Limited, together with its subsidiaries, engages in the production and sale of packaging paper, recycled printing and writing paper, and specialty paper and pulp products in the People's Republic of China. The company offers linerboard products, including kraft, test, white top, and coated linerboards; corrugating medium containerboard products; corrugated cardboard products; carton box products; corrugated sheet products; and coated duplex boards. It also provides recycled printing and writing paper, such as uncoated wood-free paper and office paper; capacitor tissue paper; low and high voltage, ultra-high-voltage transformer coil winding, and heat-resistant insulating paper; and recycled and kraft pulp products. It also operates in Vietnam, Malaysia, and the United States. The company was founded in 1995 and is headquartered in Dongguan, the People's Republic of China. Nine Dragons Paper (Holdings) Limited operates as a subsidiary of Best Result Holdings Limited.