INGR vs. MHGVY: Which Stock Is the Better Value Option?
Investors interested in Food - Miscellaneous stocks are likely familiar with Ingredion (INGR) and Marine Harvest ASA (MHGVY). 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both Ingredion and Marine Harvest ASA are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
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.
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 11.26, while MHGVY has a forward P/E of 12.23. We also note that INGR has a PEG ratio of 1.02. 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. MHGVY currently has a PEG ratio of 3.96.
Another notable valuation metric for INGR is its P/B ratio of 2.01. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, MHGVY has a P/B of 2.52.
Based on these metrics and many more, INGR holds a Value grade of A, while MHGVY has a Value grade of C.
Both INGR and MHGVY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that INGR is the superior value option right now.
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Ingredion Incorporated (INGR) : Free Stock Analysis Report
Marine Harvest ASA (MHGVY) : Free Stock Analysis Report
