Jamba (NASDAQ: JMBA) and Del Taco Restaurants (NASDAQ:TACO) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Insider and Institutional Ownership

99.2% of Jamba shares are held by institutional investors. Comparatively, 65.8% of Del Taco Restaurants shares are held by institutional investors. 15.9% of Jamba shares are held by insiders. Comparatively, 14.6% of Del Taco Restaurants shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Jamba and Del Taco Restaurants’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jamba N/A N/A N/A
Del Taco Restaurants 4.81% 5.90% 3.08%

Volatility and Risk

Jamba has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, Del Taco Restaurants has a beta of -0.21, indicating that its share price is 121% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Jamba and Del Taco Restaurants, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jamba 0 1 0 0 2.00
Del Taco Restaurants 0 1 5 0 2.83

Del Taco Restaurants has a consensus target price of $15.67, suggesting a potential upside of 16.48%. Given Del Taco Restaurants’ stronger consensus rating and higher probable upside, analysts clearly believe Del Taco Restaurants is more favorable than Jamba.

Valuation & Earnings

This table compares Jamba and Del Taco Restaurants’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Jamba $81.90 million 1.77 -$3.64 million ($1.03) -9.19
Del Taco Restaurants $468.58 million 1.11 $67.62 million $0.56 24.02

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

Summary

Del Taco Restaurants beats Jamba on 9 of the 13 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).

Del Taco Restaurants Company Profile

Del Taco Restaurants, Inc. is an operator and franchisor of restaurants featuring made-to-order cuisine, including both Mexican inspired and American classic dishes. As of January 3, 2017, the Company operated 551 Del Taco restaurants. The Company’s menu offers a combination of Mexican-inspired food, such as tacos and burritos, and American classics, such as Double Del cheeseburgers, crinkle-cut fries and milkshakes. The Company’s menu features items, such as its Platos plated meals, Epic Burritos, Handcrafted Ensaladas and Fresca Bowls, as well as items on its Buck & Under Menu. As of January 3, 2017, the Company had 310 Company-operated and 241 franchise-operated restaurants. The Platos menu offering consists of individually plated meals complete with an entree, two sides, and chips and salsa. The Company’s menu also includes quesadillas, bowls and handcrafted ensaladas, as well as burgers and fries.

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