雅虎香港財經 CMPGY vs. CMG: Which Stock Is the Better Value Option?
Investors with an interest in Retail - Restaurants stocks have likely encountered both Compass Group PLC (CMPGY) and Chipotle Mexican Grill (CMG). But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Compass Group PLC has a Zacks Rank of #2 (Buy), while Chipotle Mexican Grill has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CMPGY likely has seen a stronger improvement to its earnings outlook than CMG has recently. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CMPGY currently has a forward P/E ratio of 23.91, while CMG has a forward P/E of 56.99. We also note that CMPGY has a PEG ratio of 1.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CMG currently has a PEG ratio of 2.51.
Another notable valuation metric for CMPGY is its P/B ratio of 7.71. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CMG has a P/B of 25.75.
These are just a few of the metrics contributing to CMPGY's Value grade of B and CMG's Value grade of F.
CMPGY stands above CMG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CMPGY is the superior value option right now.
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Compass Group PLC (CMPGY) : Free Stock Analysis Report
Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
