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GPK or PKG: 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 Graphic Packaging (GPK - Free Report) and Packaging Corp. (PKG - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Both Graphic Packaging 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. 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GPK currently has a forward P/E ratio of 10.53, while PKG has a forward P/E of 13.72. We also note that GPK has a PEG ratio of 0.42. 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 2.74.
Another notable valuation metric for GPK is its P/B ratio of 3.55. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PKG has a P/B of 3.96.
Based on these metrics and many more, GPK holds a Value grade of B, while PKG has a Value grade of C.
Both GPK and PKG are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GPK is the superior value option right now.
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GPK or PKG: Which Is the Better Value Stock Right Now?
Investors with an interest in Containers - Paper and Packaging stocks have likely encountered both Graphic Packaging (GPK - Free Report) and Packaging Corp. (PKG - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Both Graphic Packaging 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. 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GPK currently has a forward P/E ratio of 10.53, while PKG has a forward P/E of 13.72. We also note that GPK has a PEG ratio of 0.42. 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 2.74.
Another notable valuation metric for GPK is its P/B ratio of 3.55. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PKG has a P/B of 3.96.
Based on these metrics and many more, GPK holds a Value grade of B, while PKG has a Value grade of C.
Both GPK and PKG are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GPK is the superior value option right now.