AMCR vs. ATR: Which Stock Is the Better Value Option?
Investors interested in stocks from the Containers - Paper and Packaging sector have probably already heard of Bemis (AMCR) and AptarGroup (ATR). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Bemis has a Zacks Rank of #2 (Buy), while AptarGroup has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AMCR has an improving earnings outlook. But this is just one piece of the puzzle 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.
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 15.25, while ATR has a forward P/E of 36. We also note that AMCR has a PEG ratio of 2.72. 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 5.14.
Another notable valuation metric for AMCR is its P/B ratio of 3.46. 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 4.60.
Based on these metrics and many more, AMCR holds a Value grade of B, while ATR has a Value grade of D.
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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