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SON or ATR: Which Is the Better Value Stock Right Now?
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Investors interested in Containers - Paper and Packaging stocks are likely familiar with Sonoco (SON - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Sonoco is sporting a Zacks Rank of #2 (Buy), while AptarGroup has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that SON 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 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.
SON currently has a forward P/E ratio of 10.83, while ATR has a forward P/E of 26.10. We also note that SON has a PEG ratio of 2.17. 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. ATR currently has a PEG ratio of 3.73.
Another notable valuation metric for SON is its P/B ratio of 2.96. 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 3.43.
These are just a few of the metrics contributing to SON's Value grade of B and ATR's Value grade of C.
SON has seen stronger estimate revision activity and sports more attractive valuation metrics than ATR, so it seems like value investors will conclude that SON is the superior option right now.
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SON or ATR: Which Is the Better Value Stock Right Now?
Investors interested in Containers - Paper and Packaging stocks are likely familiar with Sonoco (SON - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Sonoco is sporting a Zacks Rank of #2 (Buy), while AptarGroup has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that SON 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 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.
SON currently has a forward P/E ratio of 10.83, while ATR has a forward P/E of 26.10. We also note that SON has a PEG ratio of 2.17. 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. ATR currently has a PEG ratio of 3.73.
Another notable valuation metric for SON is its P/B ratio of 2.96. 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 3.43.
These are just a few of the metrics contributing to SON's Value grade of B and ATR's Value grade of C.
SON has seen stronger estimate revision activity and sports more attractive valuation metrics than ATR, so it seems like value investors will conclude that SON is the superior option right now.