GPK vs. ATR: Which Stock Is the Better Value Option?

GPK ATR

Investors with an interest in Containers - Paper and Packaging stocks have likely encountered both Graphic Packaging (GPK - Free Report) and AptarGroup (ATR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 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.

Right now, Graphic Packaging is sporting a Zacks Rank of #2 (Buy), while AptarGroup has a Zacks Rank of #4 (Sell). This means that GPK's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

GPK currently has a forward P/E ratio of 9.69, while ATR has a forward P/E of 29.15. We also note that GPK has a PEG ratio of 0.39. 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 4.16.

Another notable valuation metric for GPK is its P/B ratio of 3.54. 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 3.67.

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

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

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