GEF or UFPT: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Containers - Paper and Packaging sector have probably already heard of Greif (GEF) and UFP Technologies (UFPT). But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Greif has a Zacks Rank of #2 (Buy), while UFP Technologies has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GEF has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GEF currently has a forward P/E ratio of 9, while UFPT has a forward P/E of 17.46. We also note that GEF has a PEG ratio of 0.90. 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. UFPT currently has a PEG ratio of 1.45.
Another notable valuation metric for GEF is its P/B ratio of 1.78. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, UFPT has a P/B of 2.61.
Based on these metrics and many more, GEF holds a Value grade of A, while UFPT has a Value grade of C.
GEF has seen stronger estimate revision activity and sports more attractive valuation metrics than UFPT, so it seems like value investors will conclude that GEF is the superior option right now.
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Greif, Inc. (GEF) : Free Stock Analysis Report
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