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

GPK ATR

Investors interested in stocks from the Containers - Paper and Packaging sector have probably already heard of Graphic Packaging (GPK - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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, Graphic Packaging has a Zacks Rank of #1 (Strong Buy), while AptarGroup has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GPK has an improving earnings 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.

GPK currently has a forward P/E ratio of 8.66, while ATR has a forward P/E of 29.44. We also note that GPK has a PEG ratio of 0.35. 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. ATR currently has a PEG ratio of 4.21.

Another notable valuation metric for GPK is its P/B ratio of 3.37. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ATR has a P/B of 3.80.

These are just a few of the metrics contributing to GPK's Value grade of A and ATR's Value grade of C.

GPK sticks out from ATR in both our Zacks Rank and Style Scores models, so value investors will likely feel that GPK is the better option right now.

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