BERY vs. ATR: Which Stock Should Value Investors Buy Now?

ATR BERY

Investors interested in stocks from the Containers - Paper and Packaging sector have probably already heard of Berry Global (BERY - 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.

Right now, Berry Global is sporting a Zacks Rank of #2 (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 BERY has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

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.

BERY currently has a forward P/E ratio of 11.24, while ATR has a forward P/E of 27.69. We also note that BERY has a PEG ratio of 0.90. 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 2.68.

Another notable valuation metric for BERY is its P/B ratio of 3.76. 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 4.82.

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

BERY stands above ATR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BERY is the superior value option right now.

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