Back to top

Image: Bigstock

INGM or DUOL: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors interested in Technology Services stocks are likely familiar with Ingram Micro (INGM - Free Report) and Duolingo, Inc. (DUOL - 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.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Ingram Micro is sporting a Zacks Rank of #2 (Buy), while Duolingo, Inc. has a Zacks Rank of #3 (Hold). This means that INGM's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.

INGM currently has a forward P/E ratio of 7.99, while DUOL has a forward P/E of 56.25. We also note that INGM has a PEG ratio of 0.70. 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. DUOL currently has a PEG ratio of 1.21.

Another notable valuation metric for INGM is its P/B ratio of 1.46. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, DUOL has a P/B of 4.88.

These are just a few of the metrics contributing to INGM's Value grade of A and DUOL's Value grade of D.

INGM sticks out from DUOL in both our Zacks Rank and Style Scores models, so value investors will likely feel that INGM is the better option right now.

Published in