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LOCO vs ZUMZ

LOCO
El Pollo Loco Holdings, Inc.
NEUTRAL
Price
$13.86
Market Cap
$415.2M
Sector
Consumer Cyclical
AI Confidence
85%
ZUMZ
Zumiez Inc.
NEUTRAL
Price
$24.64
Market Cap
$418.1M
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
LOCO
15.4
ZUMZ
31.59
Forward P/E
LOCO
12.55
ZUMZ
15.95
P/B Ratio
LOCO
1.43
ZUMZ
1.16
P/S Ratio
LOCO
0.85
ZUMZ
0.45
EV/EBITDA
LOCO
10.54
ZUMZ
10.49

Profitability

Gross Margin
LOCO
22.15%
ZUMZ
35.85%
Operating Margin
LOCO
8.71%
ZUMZ
9.04%
Profit Margin
LOCO
5.41%
ZUMZ
1.44%
ROE
LOCO
9.6%
ZUMZ
4.09%
ROA
LOCO
4.76%
ZUMZ
2.19%

Growth

Revenue Growth
LOCO
8.1%
ZUMZ
4.4%
Earnings Growth
LOCO
8.1%
ZUMZ
49.1%

Financial Health

Debt/Equity
LOCO
0.83
ZUMZ
0.61
Current Ratio
LOCO
0.32
ZUMZ
2.01
Quick Ratio
LOCO
0.22
ZUMZ
1.04

Dividends

Dividend Yield
LOCO
--
ZUMZ
--
Payout Ratio
LOCO
0.0%
ZUMZ
0.0%

AI Verdict

LOCO NEUTRAL

LOCO presents a classic value opportunity with a Piotroski F-Score of 4/9 (Stable) and a current price ($13.86) trading slightly below its Graham Number ($14.03) and well below its intrinsic value ($17.23). While the company demonstrates an exceptional track record of earnings beats and attractive valuation multiples relative to the Consumer Cyclical sector, severe liquidity constraints are evident. The current ratio of 0.32 and quick ratio of 0.22 indicate significant short-term solvency risks that offset the positive valuation and growth metrics.

Strengths
Strong valuation with P/E (15.40) significantly lower than sector average (36.65)
Consistent earnings outperformance with 3/4 recent beats and high average surprise (22.61%)
Trading below both Graham Number ($14.03) and Intrinsic Value ($17.23)
Risks
Critical liquidity risk indicated by a very low Current Ratio (0.32) and Quick Ratio (0.22)
Bearish technical trend (10/100) suggesting a potential short-term price reversal
Mediocre Piotroski F-Score (4/9) indicating stagnant financial health improvement
ZUMZ NEUTRAL

ZUMZ exhibits strong financial health with a Piotroski F-Score of 7/9, indicating a robust operational recovery. While earnings growth is impressive at 49.1% YoY and the PEG ratio of 0.96 suggests reasonable valuation relative to growth, the current price of $24.64 trades at a premium to both the Graham Number ($19.3) and the Intrinsic Value ($23.01). The outlook is tempered by extremely thin net profit margins (1.44%) and a bearish insider sentiment characterized by consistent selling.

Strengths
Strong Piotroski F-Score (7/9) indicating improving financial health
Significant earnings growth (49.1% YoY) and consistent EPS beats
Attractive PEG ratio (0.96) suggesting growth is not fully priced in
Risks
Critically thin net profit margins (1.44%) leaving little room for error
Bearish insider activity with 7 sell transactions and 0 buys
Sluggish revenue growth (4.4% YoY) compared to sector averages

Compare Another Pair

LOCO vs ZUMZ: Head-to-Head Comparison

This page compares El Pollo Loco Holdings, Inc. (LOCO) and Zumiez Inc. (ZUMZ) 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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