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GPK vs. AMCR: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Containers - Paper and Packaging stocks have likely encountered both Graphic Packaging (GPK - Free Report) and Bemis (AMCR - Free Report) . 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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Graphic Packaging has a Zacks Rank of #2 (Buy), while Bemis has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GPK has an improving earnings outlook. 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GPK currently has a forward P/E ratio of 14.08, while AMCR has a forward P/E of 16.40. We also note that GPK has a PEG ratio of 0.56. 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. AMCR currently has a PEG ratio of 2.93.
Another notable valuation metric for GPK is its P/B ratio of 2.02. 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, AMCR has a P/B of 3.74.
These metrics, and several others, help GPK earn a Value grade of A, while AMCR has been given a Value grade of C.
GPK stands above AMCR 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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GPK vs. AMCR: Which Stock Should Value Investors Buy Now?
Investors with an interest in Containers - Paper and Packaging stocks have likely encountered both Graphic Packaging (GPK - Free Report) and Bemis (AMCR - Free Report) . 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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Graphic Packaging has a Zacks Rank of #2 (Buy), while Bemis has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GPK has an improving earnings outlook. 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GPK currently has a forward P/E ratio of 14.08, while AMCR has a forward P/E of 16.40. We also note that GPK has a PEG ratio of 0.56. 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. AMCR currently has a PEG ratio of 2.93.
Another notable valuation metric for GPK is its P/B ratio of 2.02. 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, AMCR has a P/B of 3.74.
These metrics, and several others, help GPK earn a Value grade of A, while AMCR has been given a Value grade of C.
GPK stands above AMCR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GPK is the superior value option right now.