Jack in the Box (NASDAQ:JACK) and Famous Dave’s of America (NASDAQ:DAVE) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Jack in the Box and Famous Dave’s of America’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jack in the Box $950.11 million 1.76 $94.44 million $4.35 16.91
Famous Dave’s of America $54.89 million 0.52 $4.86 million N/A N/A

Jack in the Box has higher revenue and earnings than Famous Dave’s of America.

Institutional & Insider Ownership

51.4% of Famous Dave’s of America shares are held by institutional investors. 2.7% of Jack in the Box shares are held by insiders. Comparatively, 43.0% of Famous Dave’s of America shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Jack in the Box and Famous Dave’s of America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jack in the Box 5.64% -12.11% 6.88%
Famous Dave’s of America 5.72% 19.41% 8.92%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Jack in the Box and Famous Dave’s of America, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jack in the Box 1 8 7 0 2.38
Famous Dave’s of America 0 0 1 0 3.00

Jack in the Box presently has a consensus target price of $76.13, suggesting a potential upside of 3.50%. Famous Dave’s of America has a consensus target price of $8.00, suggesting a potential upside of 158.06%. Given Famous Dave’s of America’s stronger consensus rating and higher probable upside, analysts clearly believe Famous Dave’s of America is more favorable than Jack in the Box.

Risk & Volatility

Jack in the Box has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, Famous Dave’s of America has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Summary

Famous Dave’s of America beats Jack in the Box on 7 of the 13 factors compared between the two stocks.

Jack in the Box Company Profile

Jack in the Box Inc. operates and franchises Jack in the Box quick-service restaurants. As of March 19, 2019, it operated and franchised approximately 2,200 Jack in the Box restaurants in 21 states and Guam. The company was founded in 1951 and is headquartered in San Diego, California.

Famous Dave’s of America Company Profile

Famous Dave's of America, Inc. develops, owns, operates, and franchises barbeque restaurants under the Famous Dave's name. It offers smoked, barbequed, and grilled meats, as well as entrée items and delicious side dishes that are prepared using prepared proprietary seasonings, sauces, and mixes. The company operates full-service and counter-service restaurants. As of March 4, 2019, it owned 17 locations and franchised 124 restaurants in 33 states, the Commonwealth of Puerto Rico, Canada, and the United Arab Emirates. Famous Dave's of America, Inc. was founded in 1994 and is headquartered in Minnetonka, Minnesota.

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