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BLMN vs. SHAK: Which Stock Is the Better Value Option?
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Investors interested in Retail - Restaurants stocks are likely familiar with Bloomin' Brands (BLMN - Free Report) and Shake Shack (SHAK - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Bloomin' Brands has a Zacks Rank of #1 (Strong Buy), while Shake Shack has a Zacks Rank of #3 (Hold). This means that BLMN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.
BLMN currently has a forward P/E ratio of 11.71, while SHAK has a forward P/E of 63.35. We also note that BLMN has a PEG ratio of 2.95. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SHAK currently has a PEG ratio of 7.84.
Another notable valuation metric for BLMN is its P/B ratio of 2.15. 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, SHAK has a P/B of 5.32.
These metrics, and several others, help BLMN earn a Value grade of A, while SHAK has been given a Value grade of D.
BLMN sticks out from SHAK in both our Zacks Rank and Style Scores models, so value investors will likely feel that BLMN is the better option right now.
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BLMN vs. SHAK: Which Stock Is the Better Value Option?
Investors interested in Retail - Restaurants stocks are likely familiar with Bloomin' Brands (BLMN - Free Report) and Shake Shack (SHAK - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Bloomin' Brands has a Zacks Rank of #1 (Strong Buy), while Shake Shack has a Zacks Rank of #3 (Hold). This means that BLMN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.
BLMN currently has a forward P/E ratio of 11.71, while SHAK has a forward P/E of 63.35. We also note that BLMN has a PEG ratio of 2.95. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SHAK currently has a PEG ratio of 7.84.
Another notable valuation metric for BLMN is its P/B ratio of 2.15. 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, SHAK has a P/B of 5.32.
These metrics, and several others, help BLMN earn a Value grade of A, while SHAK has been given a Value grade of D.
BLMN sticks out from SHAK in both our Zacks Rank and Style Scores models, so value investors will likely feel that BLMN is the better option right now.