GEF vs PKG

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

2% revenue growth year-over-year, versus -1. 0% for Greif, Inc. (GEF). Greif, Inc. (GEF) offers the better valuation at 4. 5x trailing P/E (17. 3x forward), making it the more compelling value choice. Analysts rate Greif, Inc. (GEF) a "Hold" — based on 13 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, Greif, Inc.

(GEF) is the cheapest at 4. 5x versus Packaging Corporation of America at 26. 0x. On forward P/E, Greif, Inc. is actually cheaper at 17. 3x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Greif, Inc. wins at 0. 38x versus Packaging Corporation of America's 1. 79x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Packaging Corporation of America (PKG) delivered a total return of +61.

6%, compared to +19. 6% for Greif, Inc. (GEF). Over 10 years, the gap is even starker: PKG returned +299. 8% versus GEF's +153. 7%. 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), Greif, Inc.

(GEF) is the lower-risk stock at 0. 65β versus Packaging Corporation of America's 0. 76β — meaning PKG is approximately 16% more volatile than GEF relative to the S&P 500. On balance sheet safety, Greif, Inc. (GEF) carries a lower debt/equity ratio of 52% 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 -1. 0% for Greif, Inc. (GEF). On earnings-per-share growth, the picture is similar: Greif, Inc. grew EPS 223. 3% year-over-year, compared to -3. 9% for Packaging Corporation of America. 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.

Greif, Inc.

(GEF) is the more profitable company, earning 19. 6% net margin versus 8. 6% for Packaging Corporation of America — meaning it keeps 19. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PKG leads at 14. 0% versus 6. 9% for GEF. At the gross margin level — before operating expenses — GEF leads at 22. 2%, 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, Greif, Inc. (GEF) is the more undervalued stock at a PEG of 0. 38x versus Packaging Corporation of America's 1. 79x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Greif, Inc. (GEF) trades at 17. 3x forward P/E versus 21. 7x for Packaging Corporation of America — 4. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GEF: 10. 8% to $75. 33.

All stocks in this comparison pay dividends.

Greif, Inc. (GEF) offers the highest yield at 3. 1%, 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.

76), 2. 2% yield, +299. 8% 10Y return). Both have compounded well over 10 years (PKG: +299. 8%, GEF: +153. 7%), 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: GEF 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.