GPK or ATR: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Containers - Paper and Packaging sector have probably already heard of Graphic Packaging (GPK) 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Graphic Packaging has a Zacks Rank of #2 (Buy), while AptarGroup has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GPK is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
GPK currently has a forward P/E ratio of 10.95, while ATR has a forward P/E of 29.21. We also note that GPK has a PEG ratio of 0.44. 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 4.17.
Another notable valuation metric for GPK is its P/B ratio of 3.54. 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, ATR has a P/B of 3.96.
These are just a few of the metrics contributing to GPK's Value grade of A and ATR's Value grade of C.
GPK sticks out from ATR in both our Zacks Rank and Style Scores models, so value investors will likely feel that GPK is the better option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Graphic Packaging Holding Company (GPK) : Free Stock Analysis Report
AptarGroup, Inc. (ATR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
