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INGR vs. MDLZ: Which Stock Should Value Investors Buy Now?

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Investors interested in Food - Miscellaneous stocks are likely familiar with Ingredion (INGR - Free Report) and Mondelez (MDLZ - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Ingredion is sporting a Zacks Rank of #2 (Buy), while Mondelez has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that INGR is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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 11.52, while MDLZ has a forward P/E of 22.08. We also note that INGR has a PEG ratio of 1.05. 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. MDLZ currently has a PEG ratio of 2.50.

Another notable valuation metric for INGR is its P/B ratio of 2.07. 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, MDLZ has a P/B of 3.39.

These are just a few of the metrics contributing to INGR's Value grade of A and MDLZ's Value grade of C.

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


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Ingredion Incorporated (INGR) - free report >>

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