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BJRI or PTLO: Which Is the Better Value Stock Right Now?

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Investors with an interest in Retail - Restaurants stocks have likely encountered both BJ's Restaurants (BJRI - Free Report) and Portillo's Inc. (PTLO - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, BJ's Restaurants has a Zacks Rank of #2 (Buy), while Portillo's Inc. has a Zacks Rank of #3 (Hold). This means that BJRI'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 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 46.16, while PTLO has a forward P/E of 80.79. We also note that BJRI has a PEG ratio of 3.08. 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. PTLO currently has a PEG ratio of 7.18.

Another notable valuation metric for BJRI is its P/B ratio of 2.26. 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, PTLO has a P/B of 3.01.

These are just a few of the metrics contributing to BJRI's Value grade of B and PTLO's Value grade of C.

BJRI sticks out from PTLO in both our Zacks Rank and Style Scores models, so value investors will likely feel that BJRI is the better option right now.


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BJ's Restaurants, Inc. (BJRI) - free report >>

Portillo's Inc. (PTLO) - free report >>

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