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MONDY vs. WRK: Which Stock Is the Better Value Option?

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Investors with an interest in Paper and Related Products stocks have likely encountered both MONDI PLC UNS (MONDY - Free Report) and WestRock . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, MONDI PLC UNS has a Zacks Rank of #2 (Buy), while WestRock has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that MONDY likely has seen a stronger improvement to its earnings outlook than WRK has recently. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

MONDY currently has a forward P/E ratio of 23.49, while WRK has a forward P/E of 26.52. We also note that MONDY has a PEG ratio of 1.19. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WRK currently has a PEG ratio of 4.77.

Another notable valuation metric for MONDY is its P/B ratio of 1.30. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, WRK has a P/B of 1.31.

Based on these metrics and many more, MONDY holds a Value grade of B, while WRK has a Value grade of D.

MONDY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that MONDY is likely the superior value option right now.


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