CBRL or CMG: Which Is the Better Value Stock Right Now?

Core Insights - Investors in the Retail - Restaurants sector may consider Cracker Barrel Old Country Store (CBRL) or Chipotle Mexican Grill (CMG) for potential undervalued stock opportunities [1] Group 1: Company Rankings - CBRL has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while CMG has a Zacks Rank of 4 (Sell) [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting CBRL is likely experiencing an improvement in earnings outlook compared to CMG [3] Group 2: Valuation Metrics - CBRL has a forward P/E ratio of 12.68, significantly lower than CMG's forward P/E of 53.21, indicating that CBRL may be undervalued [5] - CBRL's PEG ratio is 1.04, while CMG's PEG ratio is 2.41, further suggesting that CBRL is more favorably valued in terms of expected earnings growth [5] - CBRL's P/B ratio is 2.11, compared to CMG's P/B of 21.27, reinforcing the notion that CBRL is undervalued relative to its book value [6] Group 3: Value Grades - CBRL has earned a Value grade of A, while CMG has received a Value grade of F, indicating a significant difference in perceived value between the two companies [6] - The metrics used in the Style Score Value grade include P/E ratio, P/S ratio, earnings yield, and cash flow per share, which favor CBRL over CMG [4][6]