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

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Investors with an interest in Containers - Paper and Packaging stocks have likely encountered both Graphic Packaging (GPK - Free Report) and AptarGroup (ATR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Graphic Packaging has a Zacks Rank of #1 (Strong Buy), while AptarGroup has a Zacks Rank of #3 (Hold) right now. 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 also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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 8.99, while ATR has a forward P/E of 30.85. We also note that GPK has a PEG ratio of 0.36. 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 4.41.

Another notable valuation metric for GPK is its P/B ratio of 3.53. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ATR has a P/B of 3.76.

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

GPK sticks out from ATR in both our Zacks Rank and Style Scores models, so value investors will likely feel that GPK is the better option right now.


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Graphic Packaging Holding Company (GPK) - free report >>

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