GEF 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 Greif (GEF) 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Greif and AptarGroup have a Zacks Rank of # 1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.
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.
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 12.59, while ATR has a forward P/E of 28.55. We also note that GEF has a PEG ratio of 1.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ATR currently has a PEG ratio of 4.08.
Another notable valuation metric for GEF is its P/B ratio of 1.82. 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, ATR has a P/B of 3.67.
These metrics, and several others, help GEF earn a Value grade of A, while ATR has been given a Value grade of C.
Both GEF and ATR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GEF is the superior value option right now.
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Greif, Inc. (GEF) : Free Stock Analysis Report
AptarGroup, Inc. (ATR) : Free Stock Analysis Report
