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BERY or ATR: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Containers - Paper and Packaging sector have probably already heard of Berry Global (BERY - Free Report) and AptarGroup (ATR - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Berry Global is sporting a Zacks Rank of #2 (Buy), while AptarGroup has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BERY likely has seen a stronger improvement to its earnings outlook than ATR has recently. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

BERY currently has a forward P/E ratio of 11.41, while ATR has a forward P/E of 35.73. We also note that BERY has a PEG ratio of 1.14. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ATR currently has a PEG ratio of 5.10.

Another notable valuation metric for BERY is its P/B ratio of 3.65. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ATR has a P/B of 4.70.

Based on these metrics and many more, BERY holds a Value grade of A, while ATR has a Value grade of C.

BERY has seen stronger estimate revision activity and sports more attractive valuation metrics than ATR, so it seems like value investors will conclude that BERY is the superior option right now.


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AptarGroup, Inc. (ATR) - free report >>

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