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SON or ATR: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Containers - Paper and Packaging sector have probably already heard of Sonoco (SON - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Sonoco is sporting a Zacks Rank of #2 (Buy), while AptarGroup has a Zacks Rank of #3 (Hold). This means that SON'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 also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
SON currently has a forward P/E ratio of 10.71, while ATR has a forward P/E of 28.35. We also note that SON has a PEG ratio of 2.12. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ATR currently has a PEG ratio of 3.13.
Another notable valuation metric for SON is its P/B ratio of 2.19. 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 4.18.
These metrics, and several others, help SON earn a Value grade of A, while ATR has been given a Value grade of D.
SON 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 SON is likely the superior value option right now.
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SON or ATR: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Containers - Paper and Packaging sector have probably already heard of Sonoco (SON - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Sonoco is sporting a Zacks Rank of #2 (Buy), while AptarGroup has a Zacks Rank of #3 (Hold). This means that SON'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 also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
SON currently has a forward P/E ratio of 10.71, while ATR has a forward P/E of 28.35. We also note that SON has a PEG ratio of 2.12. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ATR currently has a PEG ratio of 3.13.
Another notable valuation metric for SON is its P/B ratio of 2.19. 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 4.18.
These metrics, and several others, help SON earn a Value grade of A, while ATR has been given a Value grade of D.
SON 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 SON is likely the superior value option right now.