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GPK vs. ATR: Which Stock Should Value Investors Buy Now?
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Investors interested in Containers - Paper and Packaging stocks are likely familiar with Graphic Packaging (GPK - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Graphic Packaging and AptarGroup have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings 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.
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.
GPK currently has a forward P/E ratio of 14.89, while ATR has a forward P/E of 26.20. We also note that GPK has a PEG ratio of 0.99. 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 3.08.
Another notable valuation metric for GPK is its P/B ratio of 1.80. 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 4.71.
These metrics, and several others, help GPK earn a Value grade of A, while ATR has been given a Value grade of D.
Both GPK and ATR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GPK is the superior value option right now.
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GPK vs. ATR: Which Stock Should Value Investors Buy Now?
Investors interested in Containers - Paper and Packaging stocks are likely familiar with Graphic Packaging (GPK - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Graphic Packaging and AptarGroup have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings 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.
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.
GPK currently has a forward P/E ratio of 14.89, while ATR has a forward P/E of 26.20. We also note that GPK has a PEG ratio of 0.99. 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 3.08.
Another notable valuation metric for GPK is its P/B ratio of 1.80. 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 4.71.
These metrics, and several others, help GPK earn a Value grade of A, while ATR has been given a Value grade of D.
Both GPK and ATR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GPK is the superior value option right now.