Core Insights - BJ's Restaurants (BJRI) has a stronger Zacks Rank of 2 (Buy) compared to Chipotle Mexican Grill (CMG) which has a Zacks Rank of 3 (Hold) indicating a better earnings outlook for BJRI [3] - Value investors are interested in various valuation metrics to determine if a company is undervalued at its current share price levels [3][4] Valuation Metrics - BJRI has a forward P/E ratio of 14.52, significantly lower than CMG's forward P/E of 34.01, suggesting BJRI may be undervalued [5] - BJRI's PEG ratio is 1.04, while CMG's PEG ratio is 2.09, indicating BJRI has a more favorable growth outlook relative to its price [5] - BJRI's P/B ratio is 1.78 compared to CMG's P/B of 15.54, further supporting the notion that BJRI is undervalued [6] - Based on these metrics, BJRI holds a Value grade of A, while CMG has a Value grade of D, reinforcing BJRI's position as the better option for value investors [6]
BJRI vs. CMG: Which Stock Should Value Investors Buy Now?