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

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Investors with an interest in Containers - Paper and Packaging stocks have likely encountered both Greif (GEF - Free Report) and AptarGroup (ATR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Greif has a Zacks Rank of #1 (Strong Buy), while AptarGroup has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GEF has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

GEF currently has a forward P/E ratio of 9.35, while ATR has a forward P/E of 30.98. We also note that GEF has a PEG ratio of 0.93. 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 4.43.

Another notable valuation metric for GEF is its P/B ratio of 1.80. 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 3.95.

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

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


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

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