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INGR or CELH: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Food - Miscellaneous sector have probably already heard of Ingredion (INGR - Free Report) and Celsius Holdings Inc. (CELH - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Ingredion and Celsius Holdings Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that INGR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

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.

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.

INGR currently has a forward P/E ratio of 12.43, while CELH has a forward P/E of 75. We also note that INGR has a PEG ratio of 1.13. 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. CELH currently has a PEG ratio of 2.33.

Another notable valuation metric for INGR is its P/B ratio of 2.11. 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, CELH has a P/B of 56.56.

Based on these metrics and many more, INGR holds a Value grade of A, while CELH has a Value grade of D.

INGR 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 INGR is likely the superior value option right now.


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Ingredion Incorporated (INGR) - free report >>

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