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GPK vs. ATR: Which Stock Should Value Investors Buy Now?

Investors interested in Containers - Paper and Packaging stocks are likely familiar with Graphic Packaging (GPK) and AptarGroup (ATR). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, both Graphic Packaging and AptarGroup are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.

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.

GPK currently has a forward P/E ratio of 12.77, while ATR has a forward P/E of 32.34. We also note that GPK has a PEG ratio of 0.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ATR currently has a PEG ratio of 4.62.

Another notable valuation metric for GPK is its P/B ratio of 2.35. 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 4.93.

Based on these metrics and many more, GPK holds a Value grade of A, while ATR has a Value grade of D.

Both GPK and ATR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we 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
 
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