PKG vs IP

For growth investors, International Paper Company (IP) is the stronger pick with 33.

7% revenue growth year-over-year, versus 7. 2% for Packaging Corporation of America (PKG). Packaging Corporation of America (PKG) offers the better valuation at 26. 2x trailing P/E (21. 8x forward), making it the more compelling value choice. Analysts rate International Paper Company (IP) a "Buy" — based on 29 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, Packaging Corporation of America is actually cheaper at 21.

8x.

Over the past 5 years, Packaging Corporation of America (PKG) delivered a total return of +60.

8%, compared to -27. 2% for International Paper Company (IP). Over 10 years, the gap is even starker: PKG returned +301. 6% versus IP's +29. 1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Packaging Corporation of America (PKG) is the lower-risk stock at 0.

74β versus International Paper Company's 1. 21β — meaning IP is approximately 63% more volatile than PKG relative to the S&P 500. On balance sheet safety, International Paper Company (IP) carries a lower debt/equity ratio of 73% versus 95% for Packaging Corporation of America — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), International Paper Company (IP) is pulling ahead at 33.

7% versus 7. 2% for Packaging Corporation of America (PKG). On earnings-per-share growth, the picture is similar: Packaging Corporation of America grew EPS -3. 9% year-over-year, compared to -527. 4% for International Paper Company. Over a 3-year CAGR, IP leads at 5. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Packaging Corporation of America (PKG) is the more profitable company, earning 8.

6% net margin versus -14. 1% for International Paper Company — meaning it keeps 8. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PKG leads at 14. 0% versus -11. 3% for IP. At the gross margin level — before operating expenses — IP leads at 29. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Packaging Corporation of America (PKG) trades at 21.

8x forward P/E versus 23. 4x for International Paper Company — 1. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for IP: 39. 9% to $46. 20.

All stocks in this comparison pay dividends.

International Paper Company (IP) offers the highest yield at 5. 6%, versus 2. 2% for Packaging Corporation of America (PKG).

For long-horizon retirement investors, Packaging Corporation of America (PKG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

74), 2. 2% yield, +301. 6% 10Y return). Both have compounded well over 10 years (PKG: +301. 6%, IP: +29. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: PKG is a mid-cap quality compounder stock; IP is a mid-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.