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INGR vs. CELH: Which Stock Is the Better Value Option?

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Investors with an interest in Food - Miscellaneous stocks have likely encountered both 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.

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 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 has a Zacks Rank of #1 (Strong Buy), while Celsius Holdings Inc. has a Zacks Rank of #3 (Hold) 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 only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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 14.15, while CELH has a forward P/E of 38.72. We also note that INGR has a PEG ratio of 1.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CELH currently has a PEG ratio of 3.07.

Another notable valuation metric for INGR is its P/B ratio of 2.46. 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, CELH has a P/B of 15.

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