CMPGY vs. CAVA: Which Stock Is the Better Value Option?

Core Viewpoint - The comparison between Compass Group PLC (CMPGY) and Cava Group (CAVA) indicates that CMPGY is more attractive to value investors due to its stronger earnings estimate revision trends and better valuation metrics [1][3]. Valuation Metrics - CMPGY has a forward P/E ratio of 23.27, significantly lower than CAVA's forward P/E of 116.75 [5]. - CMPGY's PEG ratio is 1.93, while CAVA's PEG ratio stands at 3.27, suggesting that CMPGY is expected to grow earnings at a more reasonable rate relative to its price [5]. - CMPGY's P/B ratio is 8.37, compared to CAVA's P/B of 9.97, indicating that CMPGY is valued more favorably in terms of market value versus book value [6]. Investment Ratings - CMPGY holds a Zacks Rank of 2 (Buy), reflecting a positive analyst outlook, while CAVA has a Zacks Rank of 4 (Sell) [3]. - Based on the Style Scores, CMPGY has a Value grade of B, whereas CAVA has a Value grade of F, further supporting the conclusion that CMPGY is the better option for value investors [6].