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

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Investors looking for stocks in the Containers - Paper and Packaging sector might want to consider either Amcor (AMCR) or AptarGroup (ATR). But which of these two stocks presents investors with the better value opportunity right now? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Amcor is sporting a Zacks Rank of #2 (Buy), while AptarGroup has a Zacks Rank of #4 (Sell). This means that AMCR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

AMCR currently has a forward P/E ratio of 16.16, while ATR has a forward P/E of 35.66. We also note that AMCR has a PEG ratio of 1.88. 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 5.09.

Another notable valuation metric for AMCR is its P/B ratio of 3.77. 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 5.03.

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

AMCR stands above ATR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AMCR is the superior value option right now.


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