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GEF vs. ATR: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Containers - Paper and Packaging sector have probably already heard of Greif (GEF - Free Report) and AptarGroup (ATR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Greif has a Zacks Rank of #1 (Strong Buy), while AptarGroup has a Zacks Rank of #4 (Sell). This means that GEF's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

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.

GEF currently has a forward P/E ratio of 8.33, while ATR has a forward P/E of 26.12. We also note that GEF has a PEG ratio of 0.83. 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. ATR currently has a PEG ratio of 3.73.

Another notable valuation metric for GEF is its P/B ratio of 1.80. 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 3.43.

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

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


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