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FWRG vs. PTLO: Which Stock Is the Better Value Option?
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Investors with an interest in Retail - Restaurants stocks have likely encountered both First Watch Restaurant Group, Inc. (FWRG - Free Report) and Portillo's Inc. (PTLO - 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 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.
First Watch Restaurant Group, Inc. and Portillo's Inc. are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that FWRG likely has seen a stronger improvement to its earnings outlook than PTLO has recently. But this is just one piece of the puzzle 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.
FWRG currently has a forward P/E ratio of 52.11, while PTLO has a forward P/E of 67.62. We also note that FWRG has a PEG ratio of 1.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PTLO currently has a PEG ratio of 9.18.
Another notable valuation metric for FWRG is its P/B ratio of 2.06. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, PTLO has a P/B of 2.11.
These metrics, and several others, help FWRG earn a Value grade of B, while PTLO has been given a Value grade of C.
FWRG stands above PTLO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FWRG is the superior value option right now.
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FWRG vs. PTLO: Which Stock Is the Better Value Option?
Investors with an interest in Retail - Restaurants stocks have likely encountered both First Watch Restaurant Group, Inc. (FWRG - Free Report) and Portillo's Inc. (PTLO - 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 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.
First Watch Restaurant Group, Inc. and Portillo's Inc. are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that FWRG likely has seen a stronger improvement to its earnings outlook than PTLO has recently. But this is just one piece of the puzzle 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.
FWRG currently has a forward P/E ratio of 52.11, while PTLO has a forward P/E of 67.62. We also note that FWRG has a PEG ratio of 1.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PTLO currently has a PEG ratio of 9.18.
Another notable valuation metric for FWRG is its P/B ratio of 2.06. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, PTLO has a P/B of 2.11.
These metrics, and several others, help FWRG earn a Value grade of B, while PTLO has been given a Value grade of C.
FWRG stands above PTLO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FWRG is the superior value option right now.