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SMFKY vs. NP: Which Stock Is the Better Value Option?
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Investors with an interest in Paper and Related Products stocks have likely encountered both SMURFIT KAPPA (SMFKY - Free Report) and Neenah Paper . 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
SMURFIT KAPPA has a Zacks Rank of #2 (Buy), while Neenah Paper has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SMFKY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
SMFKY currently has a forward P/E ratio of 8.64, while NP has a forward P/E of 17.01. We also note that SMFKY has a PEG ratio of 1.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NP currently has a PEG ratio of 3.40.
Another notable valuation metric for SMFKY is its P/B ratio of 1.93. 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, NP has a P/B of 2.77.
These metrics, and several others, help SMFKY earn a Value grade of A, while NP has been given a Value grade of D.
SMFKY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SMFKY is likely the superior value option right now.
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SMFKY vs. NP: Which Stock Is the Better Value Option?
Investors with an interest in Paper and Related Products stocks have likely encountered both SMURFIT KAPPA (SMFKY - Free Report) and Neenah Paper . 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
SMURFIT KAPPA has a Zacks Rank of #2 (Buy), while Neenah Paper has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SMFKY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
SMFKY currently has a forward P/E ratio of 8.64, while NP has a forward P/E of 17.01. We also note that SMFKY has a PEG ratio of 1.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NP currently has a PEG ratio of 3.40.
Another notable valuation metric for SMFKY is its P/B ratio of 1.93. 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, NP has a P/B of 2.77.
These metrics, and several others, help SMFKY earn a Value grade of A, while NP has been given a Value grade of D.
SMFKY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SMFKY is likely the superior value option right now.