EBF vs PKG

For growth investors, Packaging Corporation of America (PKG) is the stronger pick with 7.

2% revenue growth year-over-year, versus -6. 1% for Ennis, Inc. (EBF). Ennis, Inc. (EBF) offers the better valuation at 13. 2x trailing P/E (13. 2x forward), making it the more compelling value choice. Analysts rate Ennis, Inc. (EBF) a "Buy" — based on 2 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 trailing P/E, Ennis, Inc.

(EBF) is the cheapest at 13. 2x versus Packaging Corporation of America at 26. 4x. On forward P/E, Ennis, Inc. is actually cheaper at 13. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Packaging Corporation of America wins at 1. 82x versus Ennis, Inc. 's 14. 14x — a reasonable growth-adjusted valuation.

Over the past 5 years, Packaging Corporation of America (PKG) delivered a total return of +63.

7%, compared to +30. 8% for Ennis, Inc. (EBF). Over 10 years, the gap is even starker: PKG returned +307. 0% versus EBF's +77. 9%. 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), Ennis, Inc.

(EBF) is the lower-risk stock at 0. 53β versus Packaging Corporation of America's 0. 76β — meaning PKG is approximately 42% more volatile than EBF relative to the S&P 500. On balance sheet safety, Ennis, Inc. (EBF) carries a lower debt/equity ratio of 3% versus 95% for Packaging Corporation of America — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Packaging Corporation of America (PKG) is pulling ahead at 7.

2% versus -6. 1% for Ennis, Inc. (EBF). On earnings-per-share growth, the picture is similar: Packaging Corporation of America grew EPS -3. 9% year-over-year, compared to -6. 1% for Ennis, Inc.. Over a 3-year CAGR, PKG leads at 2. 0% 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.

Ennis, Inc.

(EBF) is the more profitable company, earning 10. 2% net margin versus 8. 6% for Packaging Corporation of America — meaning it keeps 10. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PKG leads at 14. 0% versus 13. 2% for EBF. At the gross margin level — before operating expenses — EBF leads at 29. 7%, 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Packaging Corporation of America (PKG) is the more undervalued stock at a PEG of 1. 82x versus Ennis, Inc. 's 14. 14x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Ennis, Inc. (EBF) trades at 13. 2x forward P/E versus 22. 0x for Packaging Corporation of America — 8. 8x cheaper on a one-year earnings basis.

All stocks in this comparison pay dividends.

Ennis, Inc. (EBF) offers the highest yield at 17. 3%, versus 2. 2% for Packaging Corporation of America (PKG).

For long-horizon retirement investors, Ennis, Inc.

(EBF) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 53), 17. 3% yield). Both have compounded well over 10 years (EBF: +77. 9%, PKG: +307. 0%), 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.

These companies operate in different sectors (EBF (Industrials) and PKG (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: EBF is a small-cap deep-value stock; PKG is a mid-cap quality compounder 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.