Investors interested in Containers - Paper and Packaging stocks are likely familiar with Berry Global (BERY - Free Report) and AptarGroup (ATR - Free Report) . 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Berry Global has a Zacks Rank of #2 (Buy), while AptarGroup has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BERY likely has seen a stronger improvement to its earnings outlook than ATR has recently. However, value investors will care about much more than just this.
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.
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.
BERY currently has a forward P/E ratio of 11.55, while ATR has a forward P/E of 35.23. We also note that BERY has a PEG ratio of 1.16. 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 5.03.
Another notable valuation metric for BERY is its P/B ratio of 3.69. 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 4.64.
These metrics, and several others, help BERY earn a Value grade of B, while ATR has been given a Value grade of C.
BERY sticks out from ATR in both our Zacks Rank and Style Scores models, so value investors will likely feel that BERY is the better option right now.