Yahoo Finance VRTV or KLBAY: Which Is the Better Value Stock Right Now?
Investors interested in Paper and Related Products stocks are likely familiar with Veritiv (VRTV) and Klabin SA (KLBAY). 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Veritiv and Klabin SA are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. Investors should feel comfortable knowing that VRTV likely has seen a stronger improvement to its earnings outlook than KLBAY 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
VRTV currently has a forward P/E ratio of 6.43, while KLBAY has a forward P/E of 6.73. We also note that VRTV has a PEG ratio of 0.41. 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 1.27.
Another notable valuation metric for VRTV is its P/B ratio of 2.22. 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 2.55.
These are just a few of the metrics contributing to VRTV's Value grade of A and KLBAY's Value grade of D.
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
