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BERY 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 Berry Global (BERY - Free Report) or AptarGroup (ATR - Free Report) . 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.

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 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.

Berry Global and AptarGroup are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BERY has an improving earnings outlook. 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.

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 9.03, while ATR has a forward P/E of 28.61. We also note that BERY has a PEG ratio of 0.72. 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 4.09.

Another notable valuation metric for BERY is its P/B ratio of 2.67. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ATR has a P/B of 4.31.

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

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


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

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