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

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Investors interested in Paper and Related Products stocks are likely familiar with Sappi Ltd. (SPPJY - Free Report) and WestRock (WRK - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Sappi Ltd. has a Zacks Rank of #2 (Buy), while WestRock has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that SPPJY likely has seen a stronger improvement to its earnings outlook than WRK has recently. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

SPPJY currently has a forward P/E ratio of 7.70, while WRK has a forward P/E of 24.89. We also note that SPPJY has a PEG ratio of 0.57. 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. WRK currently has a PEG ratio of 3.98.

Another notable valuation metric for SPPJY is its P/B ratio of 0.68. 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, WRK has a P/B of 1.23.

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

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


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Sappi Ltd. (SPPJY) - free report >>

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