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

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Investors looking for stocks in the Containers - Paper and Packaging sector might want to consider either Amcor (AMCR - Free Report) or 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Amcor has a Zacks Rank of #2 (Buy), while AptarGroup has a Zacks Rank of #3 (Hold) right now. This means that AMCR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

AMCR currently has a forward P/E ratio of 15.77, while ATR has a forward P/E of 31.89. We also note that AMCR has a PEG ratio of 1.83. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ATR currently has a PEG ratio of 4.56.

Another notable valuation metric for AMCR is its P/B ratio of 3.69. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ATR has a P/B of 4.62.

These metrics, and several others, help AMCR earn a Value grade of B, while ATR has been given a Value grade of C.

AMCR stands above ATR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AMCR is the superior value option right now.


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