Yahoo Finance GPK or ATR: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Containers - Paper and Packaging sector might want to consider either Graphic Packaging (GPK) or AptarGroup (ATR). 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Graphic Packaging has a Zacks Rank of #2 (Buy), while AptarGroup has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that GPK likely has seen a stronger improvement to its earnings outlook than ATR has recently. However, value investors will care about much more than just this.
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.
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 9.32, while ATR has a forward P/E of 30.23. We also note that GPK has a PEG ratio of 0.37. 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 4.32.
Another notable valuation metric for GPK is its P/B ratio of 3.73. 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 3.90.
Based on these metrics and many more, GPK holds a Value grade of A, while ATR has a Value grade of C.
GPK stands above ATR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GPK is the superior value option right now.
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Graphic Packaging Holding Company (GPK) : Free Stock Analysis Report
AptarGroup, Inc. (ATR) : Free Stock Analysis Report
