AYI vs GEF

For growth investors, Acuity Brands, Inc.

(AYI) is the stronger pick with 13. 1% revenue growth year-over-year, versus -1. 0% for Greif, Inc. (GEF). Greif, Inc. (GEF) offers the better valuation at 4. 5x trailing P/E (17. 3x forward), making it the more compelling value choice. Analysts rate Acuity Brands, Inc. (AYI) a "Hold" — based on 33 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Greif, Inc.

(GEF) is the cheapest at 4. 5x versus Acuity Brands, Inc. at 23. 6x. On forward P/E, Acuity Brands, Inc. is actually cheaper at 15. 1x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Greif, Inc. wins at 0. 38x versus Acuity Brands, Inc. 's 1. 02x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Acuity Brands, Inc.

(AYI) delivered a total return of +55. 7%, compared to +19. 6% for Greif, Inc. (GEF). Over 10 years, the gap is even starker: GEF returned +153. 7% versus AYI's +21. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Greif, Inc.

(GEF) is the lower-risk stock at 0. 65β versus Acuity Brands, Inc. 's 1. 40β — meaning AYI is approximately 116% more volatile than GEF relative to the S&P 500. On balance sheet safety, Acuity Brands, Inc. (AYI) carries a lower debt/equity ratio of 37% versus 52% for Greif, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Acuity Brands, Inc.

(AYI) is pulling ahead at 13. 1% versus -1. 0% for Greif, Inc. (GEF). On earnings-per-share growth, the picture is similar: Greif, Inc. grew EPS 223. 3% year-over-year, compared to -6. 8% for Acuity Brands, Inc.. Over a 3-year CAGR, AYI leads at 2. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Greif, Inc.

(GEF) is the more profitable company, earning 19. 6% net margin versus 9. 1% for Acuity Brands, Inc. — meaning it keeps 19. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AYI leads at 13. 7% versus 6. 9% for GEF. At the gross margin level — before operating expenses — AYI leads at 47. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Greif, Inc. (GEF) is the more undervalued stock at a PEG of 0. 38x versus Acuity Brands, Inc. 's 1. 02x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Acuity Brands, Inc. (AYI) trades at 15. 1x forward P/E versus 17. 3x for Greif, Inc. — 2. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AYI: 32. 9% to $392. 50.

All stocks in this comparison pay dividends.

Greif, Inc. (GEF) offers the highest yield at 3. 1%, versus 0. 2% for Acuity Brands, Inc. (AYI).

For long-horizon retirement investors, Greif, Inc.

(GEF) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 65), 3. 1% yield, +153. 7% 10Y return). Both have compounded well over 10 years (GEF: +153. 7%, AYI: +21. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (AYI (Industrials) and GEF (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: AYI is a small-cap quality compounder stock; GEF is a small-cap deep-value stock. GEF pays a dividend while AYI does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.