Investors interested in Retail - Restaurants stocks are likely familiar with Darden Restaurants (DRI) and Dutch Bros (BROS). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Darden Restaurants has a Zacks Rank of #2 (Buy), while Dutch Bros has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DRI likely has seen a stronger improvement to its earnings outlook than BROS has recently. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

DRI currently has a forward P/E ratio of 20.72, while BROS has a forward P/E of 115.71. We also note that DRI has a PEG ratio of 2.18. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BROS currently has a PEG ratio of 3.40.

Another notable valuation metric for DRI is its P/B ratio of 11.16. 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, BROS has a P/B of 13.68.

These are just a few of the metrics contributing to DRI's Value grade of B and BROS's Value grade of F.

DRI is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that DRI is likely the superior value option right now.

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Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report

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