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GEF vs. ATR: Which Stock Is the Better Value Option?

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Investors with an interest in Containers - Paper and Packaging stocks have likely encountered both Greif (GEF - 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Greif and AptarGroup are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that GEF likely has seen a stronger improvement to its earnings outlook than ATR has recently. But this is just one piece of the puzzle 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.

GEF currently has a forward P/E ratio of 12.67, while ATR has a forward P/E of 32.66. We also note that GEF has a PEG ratio of 1.27. 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 4.67.

Another notable valuation metric for GEF is its P/B ratio of 2.04. 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 4.73.

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

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


In-Depth Zacks Research for the Tickers Above


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Greif, Inc. (GEF) - free report >>

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