VRTV vs. KLBAY: Which Stock Is the Better Value Option?
Investors interested in Paper and Related Products stocks are likely familiar with Veritiv (VRTV) and Klabin SA (KLBAY). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Veritiv has a Zacks Rank of #2 (Buy), while Klabin SA has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VRTV has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
VRTV currently has a forward P/E ratio of 8.31, while KLBAY has a forward P/E of 10.09. We also note that VRTV has a PEG ratio of 0.53. 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. KLBAY currently has a PEG ratio of 1.90.
Another notable valuation metric for VRTV is its P/B ratio of 2.58. 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, KLBAY has a P/B of 2.88.
These are just a few of the metrics contributing to VRTV's Value grade of A and KLBAY's Value grade of C.
VRTV sticks out from KLBAY in both our Zacks Rank and Style Scores models, so value investors will likely feel that VRTV is the better option right now.
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Veritiv Corporation (VRTV) : Free Stock Analysis Report
Klabin SA (KLBAY) : Free Stock Analysis Report
