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BERY or ATR: Which Is the Better Value Stock Right Now?

Zacks Equity Research
·2-min read

Investors with an interest in Containers - Paper and Packaging stocks have likely encountered both Berry Global (BERY) and AptarGroup (ATR). But which of these two companies is the best option for those looking for undervalued stocks? 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.

Berry Global has a Zacks Rank of #2 (Buy), while AptarGroup has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BERY is likely seeing its earnings outlook improve to a greater extent. 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.

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Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

BERY currently has a forward P/E ratio of 11.97, while ATR has a forward P/E of 37.51. We also note that BERY has a PEG ratio of 1.20. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ATR currently has a PEG ratio of 5.36.

Another notable valuation metric for BERY is its P/B ratio of 3.42. 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 5.41.

Based on these metrics and many more, BERY holds a Value grade of A, while ATR has a 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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Berry Global Group, Inc. (BERY) : Free Stock Analysis Report
 
AptarGroup, Inc. (ATR) : Free Stock Analysis Report
 
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