Back to top

Image: Bigstock

BERY 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 Berry Global (BERY - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Both Berry Global and AptarGroup have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.

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.

BERY currently has a forward P/E ratio of 8.42, while ATR has a forward P/E of 30.95. We also note that BERY has a PEG ratio of 1.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ATR currently has a PEG ratio of 3.03.

Another notable valuation metric for BERY is its P/B ratio of 2.34. 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 4.57.

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

Both BERY and ATR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BERY is the superior value 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 >>

Berry Global Group, Inc. (BERY) - free report >>

Published in