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AMCR vs. ATR: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Containers - Paper and Packaging sector might want to consider either Bemis (AMCR) or AptarGroup (ATR). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Bemis and AptarGroup are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AMCR is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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.

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.

AMCR currently has a forward P/E ratio of 16.16, while ATR has a forward P/E of 27.19. We also note that AMCR has a PEG ratio of 2.15. 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. ATR currently has a PEG ratio of 2.63.

Another notable valuation metric for AMCR is its P/B ratio of 3.05. 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 4.73.

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

AMCR has seen stronger estimate revision activity and sports more attractive valuation metrics than ATR, so it seems like value investors will conclude that AMCR is the superior option right now.

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