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BLMN or CMG: Which Is the Better Value Stock Right Now?
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Investors with an interest in Retail - Restaurants stocks have likely encountered both Bloomin' Brands (BLMN - Free Report) and Chipotle Mexican Grill (CMG - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Bloomin' Brands has a Zacks Rank of #2 (Buy), while Chipotle Mexican Grill has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BLMN is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
BLMN currently has a forward P/E ratio of 9.98, while CMG has a forward P/E of 37.40. We also note that BLMN has a PEG ratio of 0.81. 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. CMG currently has a PEG ratio of 1.42.
Another notable valuation metric for BLMN is its P/B ratio of 10.32. 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, CMG has a P/B of 18.17.
These are just a few of the metrics contributing to BLMN's Value grade of A and CMG's Value grade of F.
BLMN sticks out from CMG 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 or CMG: Which Is the Better Value Stock Right Now?
Investors with an interest in Retail - Restaurants stocks have likely encountered both Bloomin' Brands (BLMN - Free Report) and Chipotle Mexican Grill (CMG - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Bloomin' Brands has a Zacks Rank of #2 (Buy), while Chipotle Mexican Grill has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BLMN is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
BLMN currently has a forward P/E ratio of 9.98, while CMG has a forward P/E of 37.40. We also note that BLMN has a PEG ratio of 0.81. 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. CMG currently has a PEG ratio of 1.42.
Another notable valuation metric for BLMN is its P/B ratio of 10.32. 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, CMG has a P/B of 18.17.
These are just a few of the metrics contributing to BLMN's Value grade of A and CMG's Value grade of F.
BLMN sticks out from CMG in both our Zacks Rank and Style Scores models, so value investors will likely feel that BLMN is the better option right now.