American Biltrite (OTCMKTS:ABLT – Get Rating) and Karat Packaging (NASDAQ:KRT – Get Rating) are both small-cap construction companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.
Insider and Institutional Ownership
1.1% of American Biltrite shares are owned by institutional investors. Comparatively, 19.7% of Karat Packaging shares are owned by institutional investors. 71.6% of Karat Packaging shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations and price targets for American Biltrite and Karat Packaging, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Biltrite | 0 | 0 | 0 | 0 | N/A |
| Karat Packaging | 0 | 0 | 1 | 0 | 3.00 |
Karat Packaging has a consensus price target of $31.00, indicating a potential upside of 65.16%. Given Karat Packaging’s higher possible upside, analysts plainly believe Karat Packaging is more favorable than American Biltrite.
Valuation & Earnings
This table compares American Biltrite and Karat Packaging’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Biltrite | $190.73 million | 0.03 | $1.79 million | N/A | N/A |
| Karat Packaging | $364.24 million | 1.02 | $20.78 million | $1.13 | 16.61 |
Karat Packaging has higher revenue and earnings than American Biltrite.
Risk & Volatility
American Biltrite has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Karat Packaging has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.
Profitability
This table compares American Biltrite and Karat Packaging’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Biltrite | 0.94% | 6.71% | 1.45% |
| Karat Packaging | 5.41% | 16.93% | 10.33% |
Summary
Karat Packaging beats American Biltrite on 11 of the 11 factors compared between the two stocks.
About American Biltrite
American Biltrite Inc., together with its subsidiaries, provides tape, jewelry, flooring, and rubber products worldwide. The company produces and offers pressure sensitive tapes, films, and protective sheeting under the American Biltrite and Ideal brands, which are used in various markets, such as automotive and transportation; construction; shoe/footwear; graphic arts, print, and signage; and various other industrial and consumer applications. It also manufactures and distributes commercial flooring primarily for healthcare, educational, and institutional sectors; and performance sheet rubber in North America, as well as designs and supplies fashion jewelry to department stores under the brands of Guess, T Tahari, Robert Rose, Berry, and Jessica McClintock. The company sells its tape products through sales organizations, distributors, and select manufacturers’ representatives. American Biltrite Inc. was founded in 1908 and is based in Wellesley Hills, Massachusetts.
About Karat Packaging
Karat Packaging Inc. manufactures and distributes 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 offers its products to domestic and regional distributors, restaurant chains, retail establishments, and online customers. It also provides new product development, design, printing, and logistics services. Karat Packaging Inc. was founded in 2000 and is based in Chino, California.
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