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

Zacks Equity Research
·2 mins read

Investors looking for stocks in the Containers - Paper and Packaging sector might want to consider either Berry Global (BERY) 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.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with 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. However, value investors will care about much more than just this.

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.

BERY currently has a forward P/E ratio of 11.74, while ATR has a forward P/E of 37.54. We also note that BERY has a PEG ratio of 1.17. 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 5.36.

Another notable valuation metric for BERY is its P/B ratio of 3.84. 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 4.81.

Based on these metrics and many more, BERY holds a Value grade of A, while ATR has a Value grade of D.

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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Berry Global Group, Inc. (BERY) : Free Stock Analysis Report
 
AptarGroup, Inc. (ATR) : Free Stock Analysis Report
 
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Zacks Investment Research