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BBQ vs. CMG: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Retail - Restaurants sector might want to consider either BBQ Holdings or Chipotle Mexican Grill (CMG - 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 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.
BBQ Holdings has a Zacks Rank of #1 (Strong Buy), while Chipotle Mexican Grill has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that BBQ likely has seen a stronger improvement to its earnings outlook than CMG has recently. However, value investors will care about much more than just this.
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.
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.
BBQ currently has a forward P/E ratio of 12.78, while CMG has a forward P/E of 48.23. We also note that BBQ has a PEG ratio of 0.91. 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. CMG currently has a PEG ratio of 2.41.
Another notable valuation metric for BBQ is its P/B ratio of 2.46. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CMG has a P/B of 18.63.
These are just a few of the metrics contributing to BBQ's Value grade of B and CMG's Value grade of D.
BBQ 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 BBQ is likely the superior value option right now.
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BBQ vs. CMG: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Retail - Restaurants sector might want to consider either BBQ Holdings or Chipotle Mexican Grill (CMG - 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 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.
BBQ Holdings has a Zacks Rank of #1 (Strong Buy), while Chipotle Mexican Grill has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that BBQ likely has seen a stronger improvement to its earnings outlook than CMG has recently. However, value investors will care about much more than just this.
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.
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.
BBQ currently has a forward P/E ratio of 12.78, while CMG has a forward P/E of 48.23. We also note that BBQ has a PEG ratio of 0.91. 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. CMG currently has a PEG ratio of 2.41.
Another notable valuation metric for BBQ is its P/B ratio of 2.46. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CMG has a P/B of 18.63.
These are just a few of the metrics contributing to BBQ's Value grade of B and CMG's Value grade of D.
BBQ 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 BBQ is likely the superior value option right now.