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AMCR 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 Amcor (AMCR - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Amcor has a Zacks Rank of #2 (Buy), while AptarGroup has a Zacks Rank of #4 (Sell) right now. This means that AMCR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

AMCR currently has a forward P/E ratio of 14.34, while ATR has a forward P/E of 30.88. We also note that AMCR has a PEG ratio of 2.01. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ATR currently has a PEG ratio of 4.41.

Another notable valuation metric for AMCR is its P/B ratio of 3.78. 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 3.94.

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

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


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