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BJRI or BROS: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Retail - Restaurants sector have probably already heard of BJ's Restaurants (BJRI - Free Report) and Dutch Bros (BROS - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
BJ's Restaurants has a Zacks Rank of #1 (Strong Buy), while Dutch Bros has a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that BJRI likely has seen a stronger improvement to its earnings outlook than BROS has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
BJRI currently has a forward P/E ratio of 16.57, while BROS has a forward P/E of 94.75. We also note that BJRI has a PEG ratio of 1.18. 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. BROS currently has a PEG ratio of 3.11.
Another notable valuation metric for BJRI is its P/B ratio of 2. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BROS has a P/B of 12.41.
Based on these metrics and many more, BJRI holds a Value grade of A, while BROS has a Value grade of F.
BJRI has seen stronger estimate revision activity and sports more attractive valuation metrics than BROS, so it seems like value investors will conclude that BJRI is the superior option right now.
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BJRI or BROS: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Retail - Restaurants sector have probably already heard of BJ's Restaurants (BJRI - Free Report) and Dutch Bros (BROS - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
BJ's Restaurants has a Zacks Rank of #1 (Strong Buy), while Dutch Bros has a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that BJRI likely has seen a stronger improvement to its earnings outlook than BROS has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
BJRI currently has a forward P/E ratio of 16.57, while BROS has a forward P/E of 94.75. We also note that BJRI has a PEG ratio of 1.18. 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. BROS currently has a PEG ratio of 3.11.
Another notable valuation metric for BJRI is its P/B ratio of 2. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BROS has a P/B of 12.41.
Based on these metrics and many more, BJRI holds a Value grade of A, while BROS has a Value grade of F.
BJRI has seen stronger estimate revision activity and sports more attractive valuation metrics than BROS, so it seems like value investors will conclude that BJRI is the superior option right now.