Investors interested in Containers - Paper and Packaging stocks are likely familiar with Sonoco (SON) and Packaging Corp. (PKG). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Sonoco is sporting a Zacks Rank of #1 (Strong Buy), while Packaging Corp. has a Zacks Rank of #2 (Buy). 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 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.

SON currently has a forward P/E ratio of 8, while PKG has a forward P/E of 21.19. We also note that SON has a PEG ratio of 0.80. 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. PKG currently has a PEG ratio of 2.36.

Another notable valuation metric for SON is its P/B ratio of 1.93. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, PKG has a P/B of 5.05.

These metrics, and several others, help SON earn a Value grade of A, while PKG has been given a Value grade of C.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Sonoco Products Company (SON) : Free Stock Analysis Report

Packaging Corporation of America (PKG) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research