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GEF vs. AMCR: Which Stock Is the Better Value Option?

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·2 min read
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Investors looking for stocks in the Containers - Paper and Packaging sector might want to consider either Greif (GEF) or Bemis (AMCR). 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.

Currently, Greif has a Zacks Rank of #2 (Buy), while Bemis 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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 12.89, while AMCR has a forward P/E of 15.87. We also note that GEF has a PEG ratio of 1.29. 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. AMCR currently has a PEG ratio of 2.06.

Another notable valuation metric for GEF is its P/B ratio of 1.87. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AMCR has a P/B of 3.73.

Based on these metrics and many more, GEF holds a Value grade of A, while AMCR has a Value grade of C.

GEF has seen stronger estimate revision activity and sports more attractive valuation metrics than AMCR, 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
 
Amcor PLC (AMCR) : Free Stock Analysis Report
 
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