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GPK vs. ATR: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Containers - Paper and Packaging sector have probably already heard of Graphic Packaging (GPK - Free Report) and AptarGroup (ATR - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Graphic Packaging has a Zacks Rank of #1 (Strong Buy), while AptarGroup has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GPK is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.
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.
GPK currently has a forward P/E ratio of 8.50, while ATR has a forward P/E of 28.72. We also note that GPK has a PEG ratio of 0.34. 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 4.10.
Another notable valuation metric for GPK is its P/B ratio of 3.33. 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, ATR has a P/B of 3.50.
These are just a few of the metrics contributing to GPK's Value grade of A and ATR's Value grade of C.
GPK stands above ATR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GPK is the superior value option right now.
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GPK vs. ATR: Which Stock Is the Better Value Option?
Investors interested in stocks from the Containers - Paper and Packaging sector have probably already heard of Graphic Packaging (GPK - Free Report) and AptarGroup (ATR - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Graphic Packaging has a Zacks Rank of #1 (Strong Buy), while AptarGroup has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GPK is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.
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.
GPK currently has a forward P/E ratio of 8.50, while ATR has a forward P/E of 28.72. We also note that GPK has a PEG ratio of 0.34. 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 4.10.
Another notable valuation metric for GPK is its P/B ratio of 3.33. 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, ATR has a P/B of 3.50.
These are just a few of the metrics contributing to GPK's Value grade of A and ATR's Value grade of C.
GPK stands above ATR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GPK is the superior value option right now.