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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 companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

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

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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 11.94, while CELH has a forward P/E of 74.65. We also note that INGR has a PEG ratio of 1.09. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CELH currently has a PEG ratio of 2.32.

Another notable valuation metric for INGR is its P/B ratio of 2.04. 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 56.64.

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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