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CMG vs TM

CMG
Chipotle Mexican Grill, Inc.
BULLISH
Price
$31.57
Market Cap
$41.74B
Sector
Consumer Cyclical
AI Confidence
85%
TM
Toyota Motor Corporation
NEUTRAL
Price
$209.75
Market Cap
$273.37B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
CMG
27.94
TM
11.84
Forward P/E
CMG
24.1
TM
13.29
P/B Ratio
CMG
12.99
TM
11.21
P/S Ratio
CMG
3.54
TM
0.01
EV/EBITDA
CMG
19.36
TM
4.71

Profitability

Gross Margin
CMG
40.19%
TM
17.6%
Operating Margin
CMG
16.13%
TM
8.85%
Profit Margin
CMG
13.04%
TM
7.32%
ROE
CMG
44.96%
TM
10.03%
ROA
CMG
13.58%
TM
2.73%

Growth

Revenue Growth
CMG
7.5%
TM
8.6%
Earnings Growth
CMG
2.2%
TM
-42.3%

Financial Health

Debt/Equity
CMG
1.55
TM
1.05
Current Ratio
CMG
1.54
TM
1.26
Quick Ratio
CMG
1.42
TM
1.03

Dividends

Dividend Yield
CMG
--
TM
2.78%
Payout Ratio
CMG
0.0%
TM
33.2%

AI Verdict

CMG BULLISH

Chipotle Mexican Grill (CMG) presents a compelling turnaround opportunity following a severe 12-month correction of -47.3%, now trading at $31.57 with a forward P/E of 24.10, below its historical premium and significantly discounted to the Consumer Cyclical sector average P/E of 55.02. The company maintains elite profitability, including a 44.96% ROE and 16.13% operating margin, outperforming sector peers on capital efficiency and margin resilience despite macro headwinds. While near-term earnings growth has softened (2.2% YoY, -1.4% QoQ), the stock is supported by a strong analyst consensus (buy), consistent earnings beats over the last 4 quarters (3/4), and a favorable valuation gap relative to intrinsic quality. Insider selling over the past six months raises caution, but does not override the robust fundamentals and improving risk-reward profile at current levels.

Strengths
Exceptional profitability with ROE of 44.96%, outperforming sector average of 45.89% and demonstrating superior capital allocation
High operating margin of 16.13% and gross margin of 40.19%, reflecting strong pricing power and supply chain efficiency
Consistent earnings beat record: 3 out of last 4 quarters beat estimates, with an average surprise of 2.28%
Risks
Recent insider selling activity: $7.94M in sales over last 6 months with no insider buys, signaling potential lack of confidence among executives
Earnings growth deceleration: Q/Q EPS declined by 1.4% and YoY growth slowed to 2.2%, with most recent Q/Q EPS growth down -12.1%
High debt/equity ratio of 1.55, above sector average of 1.37, increasing financial risk in a rising rate environment
TM NEUTRAL

TM shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Attractive valuation with P/E of 11.8
Risks
Premium vs Graham Number ($86.36)

Compare Another Pair

CMG vs TM: Head-to-Head Comparison

This page compares Chipotle Mexican Grill, Inc. (CMG) and Toyota Motor Corporation (TM) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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