Valuing 2 Stocks Using Ratios and Multiples: WestRock Company (WRK), Ally Financial Inc. (ALLY)

WestRock Company (NYSE:WRK) shares were trading higher by 0.31 percent ($0.18) at $58.84 a piece in Monday’s session. It had closed the previous session at $58.66. WRK trades with a P/S ratio of 1.01. This is lower than the both industry’s 1.14 and the wider sector’s 3.25. A low price-to-sales ratio, typically less than 1.0, is considered a good value. Also, it has an estimated price-earnings (P/E) multiple of 14.12 and a trailing 12-month price-earnings (P/E) multiple of 21.26. Shares of WRK have uptrended 4.49% in the past three months, while the S&P 500 has moved -0.27% in that time. WestRock Company (WRK) has a market cap of $15.04 billion and over the last 12 months, WestRock Company (NYSE:WRK) has gone stronger by 22.71%. During the last 52 weeks, the (NYSE:WRK) price has been as high as $61.6 and as low as $47.47. WestRock Company earnings have risen with an annualized rate of 10% over the last 5 years.

WestRock Company (Mean Target Price: $65.14)

The average 1-year price target for WestRock Company (WRK) — averaging the work of different analysts — reveals a mean PT of $65.14/share. That’s a potential 10.71 increase relative to where WestRock Company (NYSE:WRK) has been trading recently. The current price is seen ranging between $58.18 and $58.89. There are brokerage firms with lower targets than the average, including one setting a price target of $43. And then on the other side of the spectrum one analyst entrenched in the bullish camp has a target as high as $74.

WestRock Company (WRK) Consensus Recommendation

The collective rating of 2.1 for WestRock Company (NYSE:WRK) also leans strongly towards the neutral end of the spectrum. Of the 16 analysts surveyed by Reuters that track WRK 5 of them rate its stock a hold. The other 11, though not evenly; between analysts who think you should buy WestRock Company versus those who think you should sell it. A 11 analysts rate it as either a buy or a strong buy, while0 believe that investors should either steer clear of WRK or, if they already own its stock, sell it.

Is Ally Financial Inc. (NYSE:ALLY) Cheap From Peers?

Ally Financial Inc. (ALLY) pulled off a 0.31 percent gain and now trades for $25.65. ALLY comes in with a P/S ratio of 1.39 that’s greater than 1, potentially implying that it could be expensive relative to the overall sector (6.16) and its peers (8.67). Also, it has an estimated price-earnings (P/E) multiple of 9.64 and a trailing 12-month price-earnings (P/E) multiple of 11.94. During the last 52 weeks, the price has been as high as $26.93 and as low as $17.83. Ally Financial Inc. (NYSE:ALLY) earnings have risen with a quarterly rate of 4.5% over the last 5 years. Shares of ALLY have increased 13.3% in the past three monthswhile the S&P 500 has gained 9.83% in that time.

Ally Financial Inc. (Price Objective: $28.53)

Ally Financial Inc. (NYSE:ALLY) has a market cap of $11.52 billion and over the last 12 months, ALLY has risen by 39.71%. The average 1-year price target for (ALLY) reveals an average price target of $28.53 per share. That’s a potential 11.23 gain from where (NYSE:ALLY) has been trading recently. There are brokerage firms with lower targets than the average, including one setting a price target of $24. And then on the other side of the spectrum one analyst entrenched in the bullish camp has a target as high as $33.

Analyst Thoughts About Ally Financial Inc. (NYSE:ALLY)

The consensus recommendation — averaging the work of 17 analysts — of 2.1 for Ally Financial Inc. (ALLY) points to moderate case. Of the analysts surveyed by Reuters that track Ally Financial Inc. 4 of them rate its stock a hold. The other 13 are split, though not evenly, between analysts who think you should buy its stock versus those who think you should sell it. A 12 analysts rate it as either a buy or a strong buy, while 1 believe that investors should either steer clear of (NYSE:ALLY) or, if they already own its stock, sell it.