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GEF or PKG: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Containers - Paper and Packaging sector might want to consider either Greif (GEF - Free Report) or Packaging Corp. (PKG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Greif and Packaging Corp. have a Zacks Rank of # 1 (Strong Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
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.
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.
GEF currently has a forward P/E ratio of 9.34, while PKG has a forward P/E of 14.60. We also note that GEF has a PEG ratio of 0.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PKG currently has a PEG ratio of 2.92.
Another notable valuation metric for GEF is its P/B ratio of 1.91. 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, PKG has a P/B of 4.02.
These are just a few of the metrics contributing to GEF's Value grade of B and PKG's Value grade of D.
Both GEF and PKG are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GEF is the superior value option right now.
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GEF or PKG: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Containers - Paper and Packaging sector might want to consider either Greif (GEF - Free Report) or Packaging Corp. (PKG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Greif and Packaging Corp. have a Zacks Rank of # 1 (Strong Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
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.
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.
GEF currently has a forward P/E ratio of 9.34, while PKG has a forward P/E of 14.60. We also note that GEF has a PEG ratio of 0.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PKG currently has a PEG ratio of 2.92.
Another notable valuation metric for GEF is its P/B ratio of 1.91. 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, PKG has a P/B of 4.02.
These are just a few of the metrics contributing to GEF's Value grade of B and PKG's Value grade of D.
Both GEF and PKG are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GEF is the superior value option right now.