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

GPK ATR

Investors interested in Containers - Paper and Packaging stocks are likely familiar with 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.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Both Graphic Packaging and AptarGroup have a Zacks Rank of # 1 (Strong Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

GPK currently has a forward P/E ratio of 8.50, while ATR has a forward P/E of 30.10. We also note that GPK has a PEG ratio of 0.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ATR currently has a PEG ratio of 4.30.

Another notable valuation metric for GPK is its P/B ratio of 3.42. 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 3.75.

Based on these metrics and many more, GPK holds a Value grade of A, while ATR has a Value grade of D.

Both GPK and ATR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GPK is the superior value option right now.

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