PKG vs. LW

Last updated Jun 4, 2026

PKG (Packaging Corporation of America) and LW (Lamb Weston Holdings, Inc.) are both stocks. PKG operates in Packaging & Containers (Consumer Cyclical), while LW operates in Packaged Foods (Consumer Defensive). Over the past 5 years, PKG returned 12.13%/yr vs -11.32%/yr for LW. At a 0.31 correlation, their price movements are largely independent.

Performance

PKG vs. LW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Packaging Corporation of America (PKG) and Lamb Weston Holdings, Inc. (LW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PKG achieves a 9.44% return, which is significantly higher than LW's 1.85% return.

PKG

• 1D: -0.20%
• 1M: 2.90%
• YTD: 9.44%
• 6M: 14.72%
• 1Y: 18.46%
• 3Y*: 23.86%
• 5Y*: 12.13%
• 10Y*: 15.81%

LW

• 1D: 0.79%
• 1M: -0.53%
• YTD: 1.85%
• 6M: -29.47%
• 1Y: -22.40%
• 3Y*: -26.56%
• 5Y*: -11.32%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

PKG vs. LW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PKG Packaging Corporation of America	9.44%	-6.08%	41.70%	31.90%	-2.62%	1.55%	27.20%	38.35%	-28.85%	45.51%
LW Lamb Weston Holdings, Inc.	1.85%	-35.69%	-37.01%	22.32%	42.89%	-18.40%	-7.23%	18.27%	31.81%	51.77%

Correlation

The correlation between PKG and LW is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (3Y) Calculated over the trailing 3-year period	0.29
Correlation (5Y) Calculated over the trailing 5-year period	0.31
Correlation (All Time) Calculated using the full available price history since Nov 11, 2016	0.31

Fundamentals

Market Cap PKG : $19.99B LW : $5.84B
EPS PKG : $8.25 LW : $2.15
PE Ratio PKG : 27.18 LW : 19.49
PEG Ratio PKG : 35.82 LW : 0.27
PS Ratio PKG : 2.18 LW : 0.90
PB Ratio PKG : 4.36 LW : 3.20
Total Revenue (TTM) PKG : $9.22B LW : $6.52B
Gross Profit (TTM) PKG : $1.89B LW : $1.34B
EBITDA (TTM) PKG : $1.84B LW : $893.90M

Return for Risk

PKG vs. LW — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

PKG

PKG Risk / Return Rank: 60
PKG Sharpe Ratio Rank: 63
PKG Sortino Ratio Rank: 57
PKG Omega Ratio Rank: 56
PKG Calmar Ratio Rank: 62
PKG Martin Ratio Rank: 62

LW

LW Risk / Return Rank: 20
LW Sharpe Ratio Rank: 18
LW Sortino Ratio Rank: 21
LW Omega Ratio Rank: 19
LW Calmar Ratio Rank: 21
LW Martin Ratio Rank: 21

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

PKG vs. LW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Packaging Corporation of America (PKG) and Lamb Weston Holdings, Inc. (LW). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	PKG	LW	Difference
Sharpe ratio Return per unit of total volatility	0.69	-0.51	+1.20
Sortino ratio Return per unit of downside risk	1.17	-0.44	+1.61
Omega ratio Gain probability vs. loss probability	1.14	0.93	+0.21
Calmar ratio Return relative to maximum drawdown	1.08	-0.54	+1.62
Martin ratio Return relative to average drawdown	2.39	-0.96	+3.35
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PKG vs. LW - Sharpe Ratio Comparison

The current PKG Sharpe Ratio is 0.69, which is higher than the LW Sharpe Ratio of -0.51. The chart below compares the historical Sharpe Ratios of PKG and LW, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	PKG	LW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.69	-0.51	+1.20
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.48	-0.30	+0.78
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.48	0.14	+0.33

Drawdowns

PKG vs. LW - Drawdown Comparison

The maximum PKG drawdown since its inception was -66.88%, roughly equal to the maximum LW drawdown of -64.56%. Use the drawdown chart below to compare losses from any high point for PKG and LW.

Drawdown Indicators

	PKG	LW	Difference
Max Drawdown Largest peak-to-trough decline	-66.88%	-64.56%	-2.32%
Max Drawdown (1Y) Largest decline over 1 year	-17.21%	-41.37%	+24.16%
Max Drawdown (3Y) Largest decline over 3 years	-28.43%	-64.56%	+36.13%
Max Drawdown (5Y) Largest decline over 5 years	-31.78%	-64.56%	+32.78%
Max Drawdown (10Y) Largest decline over 10 years	-38.18%	—	—
Current Drawdown Current decline from peak	-8.36%	-61.03%	+52.67%
Average Drawdown Average peak-to-trough decline	-11.73%	-21.21%	+9.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.74%	23.36%	-15.62%

Volatility

PKG vs. LW - Volatility Comparison

The current volatility for Packaging Corporation of America (PKG) is 8.61%, while Lamb Weston Holdings, Inc. (LW) has a volatility of 10.18%. This indicates that PKG experiences smaller price fluctuations and is considered to be less risky than LW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PKG	LW	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.61%	10.18%	-1.57%
Volatility (6M) Calculated over the trailing 6-month period	20.88%	38.23%	-17.35%
Volatility (1Y) Calculated over the trailing 1-year period	26.89%	44.14%	-17.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.34%	37.84%	-12.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.33%	35.87%	-8.54%

Dividends

PKG vs. LW - Dividend Comparison

PKG's dividend yield for the trailing twelve months is around 2.23%, less than LW's 3.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LW Lamb Weston Holdings, Inc.	3.58%	3.53%	2.15%	1.04%	1.10%	1.48%	1.17%	0.93%	1.04%	1.33%	0.00%	0.00%
PKG Packaging Corporation of America	2.23%	2.42%	2.22%	3.07%	3.71%	2.94%	2.44%	2.82%	3.59%	2.09%	2.78%	3.49%

Financials

PKG vs. LW - Profitability Comparison

The chart below illustrates the profitability comparison between Packaging Corporation of America and Lamb Weston Holdings, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

PKG - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Packaging Corporation of America reported a gross profit of 452.90M and revenue of 2.37B. Therefore, the gross margin over that period was 19.1%.

LW - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Lamb Weston Holdings, Inc. reported a gross profit of 331.60M and revenue of 1.56B. Therefore, the gross margin over that period was 21.2%.

PKG - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Packaging Corporation of America reported an operating income of 272.60M and revenue of 2.37B, resulting in an operating margin of 11.5%.

LW - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Lamb Weston Holdings, Inc. reported an operating income of 126.60M and revenue of 1.56B, resulting in an operating margin of 8.1%.

PKG - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Packaging Corporation of America reported a net income of 170.90M and revenue of 2.37B, resulting in a net margin of 7.2%.

LW - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Lamb Weston Holdings, Inc. reported a net income of 54.00M and revenue of 1.56B, resulting in a net margin of 3.5%.

Frequently Asked Questions

Can I hold both PKG and LW in my portfolio?

PKG and LW have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PKG or LW?

LW has higher volatility (10.18%) compared to PKG (8.61%). In terms of maximum drawdown, PKG dropped -66.88% vs LW's -64.56%.

Which has better risk-adjusted returns?

PKG currently has the higher Sharpe Ratio (0.69 vs -0.51), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.