CBRL or CMG: 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) or Chipotle Mexican Grill (CMG). But which of these two companies is the best option for those looking for undervalued stocks? Let's 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, Cracker Barrel Old Country Store has a Zacks Rank of #2 (Buy), while Chipotle Mexican Grill has a Zacks Rank of #4 (Sell). 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. But this is just one piece of the puzzle for value investors.

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 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.

CBRL currently has a forward P/E ratio of 12.68, while CMG has a forward P/E of 53.21. We also note that CBRL has a PEG ratio of 1.04. 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. CMG currently has a PEG ratio of 2.41.

Another notable valuation metric for CBRL is its P/B ratio of 2.11. 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, CMG has a P/B of 21.27.

These metrics, and several others, help CBRL earn a Value grade of A, while CMG has been given a Value grade of F.

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

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Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report

Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report

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