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BERY or ATR: Which Is the Better Value Stock Right Now?

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Investors interested in Containers - Paper and Packaging stocks are likely familiar with 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.

Right now, both Berry Global and AptarGroup are sporting a Zacks Rank of # 2 (Buy). 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 piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

BERY currently has a forward P/E ratio of 12.27, while ATR has a forward P/E of 26.99. We also note that BERY has a PEG ratio of 1.05. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ATR currently has a PEG ratio of 2.61.

Another notable valuation metric for BERY is its P/B ratio of 3.72. 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 4.70.

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.


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AptarGroup, Inc. (ATR) - free report >>

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