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INGR vs. CELH: Which Stock Should Value Investors Buy 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 presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Ingredion has a Zacks Rank of #2 (Buy), while Celsius Holdings Inc. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that INGR likely has seen a stronger improvement to its earnings outlook than CELH has recently. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

INGR currently has a forward P/E ratio of 12.00, while CELH has a forward P/E of 57.15. We also note that INGR has a PEG ratio of 1.09. 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. CELH currently has a PEG ratio of 1.67.

Another notable valuation metric for INGR is its P/B ratio of 2.18. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CELH has a P/B of 26.98.

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

INGR stands above CELH 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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