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INGR or NSRGY: Which Is the Better Value Stock Right Now?
September 18, 2024

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Investors looking for stocks in the Food - Miscellaneous sector might want to consider either Ingredion (INGR - Free Report) or Nestle SA (NSRGY - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Ingredion and Nestle SA are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that INGR is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

INGR currently has a forward P/E ratio of 13.49, while NSRGY has a forward P/E of 18.42. We also note that INGR has a PEG ratio of 1.23. 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. NSRGY currently has a PEG ratio of 2.77.

Another notable valuation metric for INGR is its P/B ratio of 2.37. 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, NSRGY has a P/B of 6.71.

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

INGR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that INGR is likely the superior value option right now.




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