KRT vs UFPT

For growth investors, UFP Technologies, Inc.

(UFPT) is the stronger pick with 19. 5% revenue growth year-over-year, versus 10. 7% for Karat Packaging Inc. (KRT). Karat Packaging Inc. (KRT) offers the better valuation at 19. 0x trailing P/E (15. 6x forward), making it the more compelling value choice. Analysts rate Karat Packaging Inc. (KRT) a "Buy" — based on 6 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, Karat Packaging Inc.

(KRT) is the cheapest at 19. 0x versus UFP Technologies, Inc. at 24. 9x. On forward P/E, Karat Packaging Inc. is actually cheaper at 15. 6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: UFP Technologies, Inc. wins at 0. 61x versus Karat Packaging Inc. 's 2. 35x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, UFP Technologies, Inc.

(UFPT) delivered a total return of +304. 2%, compared to +98. 9% for Karat Packaging Inc. (KRT). Over 10 years, the gap is even starker: UFPT returned +766. 2% versus KRT's +87. 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), Karat Packaging Inc.

(KRT) is the lower-risk stock at 0. 87β versus UFP Technologies, Inc. 's 1. 01β — meaning UFPT is approximately 16% more volatile than KRT relative to the S&P 500. On balance sheet safety, Karat Packaging Inc. (KRT) carries a lower debt/equity ratio of 36% versus 36% for UFP Technologies, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), UFP Technologies, Inc.

(UFPT) is pulling ahead at 19. 5% versus 10. 7% for Karat Packaging Inc. (KRT). On earnings-per-share growth, the picture is similar: UFP Technologies, Inc. grew EPS 15. 7% year-over-year, compared to 4. 7% for Karat Packaging Inc.. Over a 3-year CAGR, UFPT leads at 19. 4% 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.

UFP Technologies, Inc.

(UFPT) is the more profitable company, earning 11. 3% net margin versus 6. 7% for Karat Packaging Inc. — meaning it keeps 11. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: UFPT leads at 15. 3% versus 8. 8% for KRT. At the gross margin level — before operating expenses — KRT leads at 36. 8%, 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, UFP Technologies, Inc. (UFPT) is the more undervalued stock at a PEG of 0. 61x versus Karat Packaging Inc. 's 2. 35x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Karat Packaging Inc. (KRT) trades at 15. 6x forward P/E versus 23. 0x for UFP Technologies, Inc. — 7. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for UFPT: 36. 6% to $298. 00.

In this comparison, KRT (6.

0% yield) pays a dividend. UFPT does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Karat Packaging Inc.

(KRT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 87), 6. 0% yield). Both have compounded well over 10 years (KRT: +87. 9%, UFPT: +766. 2%), 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 (KRT (Consumer Cyclical) and UFPT (Healthcare)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: KRT is a small-cap income-oriented stock; UFPT is a small-cap high-growth stock. KRT pays a dividend while UFPT does not, making them suitable for different income and tax situations. 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.