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CBRL or QSR: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Retail - Restaurants sector might want to consider either Cracker Barrel Old Country Store (CBRL - Free Report) or Restaurant Brands (QSR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Cracker Barrel Old Country Store has a Zacks Rank of #2 (Buy), while Restaurant Brands has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CBRL is likely seeing its earnings outlook improve to a greater extent. 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 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.
CBRL currently has a forward P/E ratio of 13.63, while QSR has a forward P/E of 21.81. We also note that CBRL has a PEG ratio of 2.30. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. QSR currently has a PEG ratio of 2.69.
Another notable valuation metric for CBRL is its P/B ratio of 3.50. 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, QSR has a P/B of 4.71.
These metrics, and several others, help CBRL earn a Value grade of A, while QSR has been given a Value grade of C.
CBRL is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CBRL is likely the superior value option right now.
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CBRL or QSR: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Retail - Restaurants sector might want to consider either Cracker Barrel Old Country Store (CBRL - Free Report) or Restaurant Brands (QSR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Cracker Barrel Old Country Store has a Zacks Rank of #2 (Buy), while Restaurant Brands has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CBRL is likely seeing its earnings outlook improve to a greater extent. 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 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.
CBRL currently has a forward P/E ratio of 13.63, while QSR has a forward P/E of 21.81. We also note that CBRL has a PEG ratio of 2.30. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. QSR currently has a PEG ratio of 2.69.
Another notable valuation metric for CBRL is its P/B ratio of 3.50. 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, QSR has a P/B of 4.71.
These metrics, and several others, help CBRL earn a Value grade of A, while QSR has been given a Value grade of C.
CBRL is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CBRL is likely the superior value option right now.