Yahoo Finance BJRI vs. PTLO: Which Stock Is the Better Value Option?
Investors interested in Retail - Restaurants stocks are likely familiar with BJ's Restaurants (BJRI) and Portillo's Inc. (PTLO). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, BJ's Restaurants is sporting a Zacks Rank of #2 (Buy), while Portillo's Inc. has a Zacks Rank of #3 (Hold). This means that BJRI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
BJRI currently has a forward P/E ratio of 48, while PTLO has a forward P/E of 74.58. We also note that BJRI has a PEG ratio of 3.20. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PTLO currently has a PEG ratio of 8.18.
Another notable valuation metric for BJRI is its P/B ratio of 2.18. 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, PTLO has a P/B of 2.78.
These metrics, and several others, help BJRI earn a Value grade of B, while PTLO has been given a Value grade of D.
BJRI stands above PTLO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BJRI is the superior value option right now.
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BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report
Portillo's Inc. (PTLO) : Free Stock Analysis Report
