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SUZ or KLBAY: Which Is the Better Value Stock Right Now?

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Investors with an interest in Paper and Related Products stocks have likely encountered both Suzano S.A. Sponsored ADR (SUZ - Free Report) and Klabin SA (KLBAY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Suzano S.A. Sponsored ADR has a Zacks Rank of #2 (Buy), while Klabin SA has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SUZ likely has seen a stronger improvement to its earnings outlook than KLBAY has recently. However, value investors will care about much more than just this.

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 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.

SUZ currently has a forward P/E ratio of 7.81, while KLBAY has a forward P/E of 13.85. We also note that SUZ has a PEG ratio of 0.18. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. KLBAY currently has a PEG ratio of 0.89.

Another notable valuation metric for SUZ is its P/B ratio of 1.1. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, KLBAY has a P/B of 6.94.

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

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

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