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

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Investors with an interest in Containers - Paper and Packaging stocks have likely encountered both Berry Global (BERY - Free Report) and AptarGroup (ATR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Berry Global has a Zacks Rank of #2 (Buy), while AptarGroup has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BERY is likely seeing its earnings outlook improve to a greater extent. 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

BERY currently has a forward P/E ratio of 12.39, while ATR has a forward P/E of 35.86. We also note that BERY has a PEG ratio of 1.24. 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 5.12.

Another notable valuation metric for BERY is its P/B ratio of 3.56. 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 5.17.

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

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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AptarGroup, Inc. (ATR) - free report >>

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