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INGR or DANOY: Which Is the Better Value Stock Right Now?
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Investors interested in Food - Miscellaneous stocks are likely familiar with Ingredion (INGR - Free Report) and Danone (DANOY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Ingredion and Danone are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that INGR has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
INGR currently has a forward P/E ratio of 9.92, while DANOY has a forward P/E of 20.70. We also note that INGR has a PEG ratio of 0.90. 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. DANOY currently has a PEG ratio of 4.81.
Another notable valuation metric for INGR is its P/B ratio of 1.67. 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, DANOY has a P/B of 3.41.
Based on these metrics and many more, INGR holds a Value grade of A, while DANOY has a Value grade of C.
INGR has seen stronger estimate revision activity and sports more attractive valuation metrics than DANOY, so it seems like value investors will conclude that INGR is the superior option right now.
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INGR or DANOY: Which Is the Better Value Stock Right Now?
Investors interested in Food - Miscellaneous stocks are likely familiar with Ingredion (INGR - Free Report) and Danone (DANOY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Ingredion and Danone are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that INGR has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
INGR currently has a forward P/E ratio of 9.92, while DANOY has a forward P/E of 20.70. We also note that INGR has a PEG ratio of 0.90. 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. DANOY currently has a PEG ratio of 4.81.
Another notable valuation metric for INGR is its P/B ratio of 1.67. 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, DANOY has a P/B of 3.41.
Based on these metrics and many more, INGR holds a Value grade of A, while DANOY has a Value grade of C.
INGR has seen stronger estimate revision activity and sports more attractive valuation metrics than DANOY, so it seems like value investors will conclude that INGR is the superior option right now.