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WRK or MONDY: Which Is the Better Value Stock Right Now?

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Investors interested in Paper and Related Products stocks are likely familiar with WestRock (WRK - Free Report) and MONDI PLC UNS (MONDY - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, WestRock is sporting a Zacks Rank of #1 (Strong Buy), while MONDI PLC UNS has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that WRK likely has seen a stronger improvement to its earnings outlook than MONDY has recently. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

WRK currently has a forward P/E ratio of 10.16, while MONDY has a forward P/E of 10.56. We also note that WRK has a PEG ratio of 0.48. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MONDY currently has a PEG ratio of 2.09.

Another notable valuation metric for WRK is its P/B ratio of 1.16. 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, MONDY has a P/B of 1.66.

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

WRK has seen stronger estimate revision activity and sports more attractive valuation metrics than MONDY, so it seems like value investors will conclude that WRK is the superior option right now.


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