Jamba (NASDAQ: JMBA) and Jack In The Box (NASDAQ:JACK) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitabiliy, risk and institutional ownership.

Volatility & Risk

Jamba has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500. Comparatively, Jack In The Box has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Jamba and Jack In The Box, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jamba 0 1 1 0 2.50
Jack In The Box 1 3 9 0 2.62

Jamba currently has a consensus target price of $16.00, indicating a potential upside of 99.00%. Jack In The Box has a consensus target price of $117.33, indicating a potential upside of 23.98%. Given Jamba’s higher probable upside, equities analysts plainly believe Jamba is more favorable than Jack In The Box.

Valuation and Earnings

This table compares Jamba and Jack In The Box’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Jamba $81.90 million 1.50 -$3.64 million ($1.03) -7.81
Jack In The Box $1.62 billion 1.72 $354.51 million $4.05 23.37

Jack In The Box has higher revenue and earnings than Jamba. Jamba is trading at a lower price-to-earnings ratio than Jack In The Box, indicating that it is currently the more affordable of the two stocks.

Dividends

Jack In The Box pays an annual dividend of $1.60 per share and has a dividend yield of 1.7%. Jamba does not pay a dividend. Jack In The Box pays out 39.5% of its earnings in the form of a dividend.

Profitability

This table compares Jamba and Jack In The Box’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jamba N/A N/A N/A
Jack In The Box 8.07% -49.06% 10.78%

Insider and Institutional Ownership

98.6% of Jamba shares are held by institutional investors. Comparatively, 93.6% of Jack In The Box shares are held by institutional investors. 15.9% of Jamba shares are held by insiders. Comparatively, 2.1% of Jack In The Box shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Jack In The Box beats Jamba on 10 of the 15 factors compared between the two stocks.

Jamba Company Profile

Jamba, Inc. is a restaurant retailer of specialty food and beverage offerings. The Company operates through retail segment. The Company’s offerings include whole fruit smoothies, squeezed juices and juice blends, Energy Bowls, and a range of food items including, hot oatmeal, breakfast wraps, sandwiches, Artisan Flatbreads, baked goods and snacks. The Company, through its subsidiary, Jamba Juice Company, operates a lifestyle brand. The Company has a global business driven by a portfolio of franchised and company-owned Jamba Juice stores, and licensed JambaGO and Jamba Juice Express formats. The Company has approximately 890 Jamba Juice stores globally, consisting of over 70 company-owned and operated stores, all located in the United States (Company Stores), approximately 740 franchisee-owned and operated stores (Franchise Stores) in the United States, and over 70 Franchise Stores in international locations (International Stores), collectively the (Jamba System).

Jack In The Box Company Profile

Jack in the Box Inc. operates and franchises Jack in the Box quick-service restaurants (QSRs) and Qdoba Mexican Eats (Qdoba) fast-casual restaurants. The Company operates in two segments: Jack in the Box and Qdoba restaurant operations. Qdoba is a fast-casual Mexican food brand in the United States, offering food items including burritos, tacos, salads, and quesadillas. Jack in the Box is a hamburger chain, which offers a selection of products, including classic burgers such as, Jumbo Jack burgers, and new product lines, such as Buttery Jack burgers, and its Brunchfast menu. As of October 2, 2016, the Company operated 2,954 Jack in the Box QSRs and Qdoba fast-casual restaurants. As of October 2, 2016, Jack in the Box system included 2,255restaurants, of which 417 were company-operated and 1,838 were franchise operated. As of October 2, 2016, the Qdoba system included 699 restaurants, of which 367 were company operated and 332 were franchise operated.

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