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

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Investors interested in stocks from the Containers - Paper and Packaging sector have probably already heard of Berry Global (BERY - Free Report) and AptarGroup (ATR - 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.

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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Berry Global and AptarGroup are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that BERY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

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.

BERY currently has a forward P/E ratio of 11.74, while ATR has a forward P/E of 34.22. We also note that BERY has a PEG ratio of 1.17. 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 4.89.

Another notable valuation metric for BERY is its P/B ratio of 3.37. 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, ATR has a P/B of 4.94.

These are just a few of the metrics contributing to BERY's Value grade of A and ATR's Value grade of C.

BERY stands above ATR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BERY is the superior value option right now.


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AptarGroup, Inc. (ATR) - free report >>

Berry Global Group, Inc. (BERY) - free report >>

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