Back to top

Image: Bigstock

GEF or ATR: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors interested in stocks from the Containers - Paper and Packaging sector have probably already heard of Greif (GEF - Free Report) and AptarGroup (ATR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Greif is sporting a Zacks Rank of #2 (Buy), while AptarGroup has a Zacks Rank of #4 (Sell). This means that GEF's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

GEF currently has a forward P/E ratio of 8.31, while ATR has a forward P/E of 26.09. We also note that GEF has a PEG ratio of 0.83. 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 GEF is its P/B ratio of 1.87. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ATR has a P/B of 3.36.

These metrics, and several others, help GEF earn a Value grade of A, while ATR has been given a Value grade of C.

GEF sticks out from ATR in both our Zacks Rank and Style Scores models, so value investors will likely feel that GEF is the better option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


AptarGroup, Inc. (ATR) - free report >>

Greif, Inc. (GEF) - free report >>

Published in