Analyzing Jack In The Box (JACK) and Its Competitors

Jack In The Box (NASDAQ:JACK) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it contrast to its rivals? We will compare Jack In The Box to related businesses based on the strength of its risk, valuation, profitability, earnings, analyst recommendations, dividends and institutional ownership.

Volatility & Risk

Jack In The Box has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, Jack In The Box’s rivals have a beta of 1.63, meaning that their average share price is 63% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Jack In The Box and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jack In The Box	3	12	2	0	1.94
Jack In The Box Competitors	3792	17194	25469	901	2.50

Jack In The Box currently has a consensus target price of $16.83, suggesting a potential upside of 21.98%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 58.07%. Given Jack In The Box’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Jack In The Box has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Jack In The Box and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Jack In The Box	$1.43 billion	-$80.72 million	7.98
Jack In The Box Competitors	$3.63 billion	$247.14 million	-138.45

Jack In The Box’s rivals have higher revenue and earnings than Jack In The Box. Jack In The Box is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Jack In The Box pays an annual dividend of $1.76 per share and has a dividend yield of 12.8%. Jack In The Box pays out 101.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.2% and pay out 37.5% of their earnings in the form of a dividend.

Institutional and Insider Ownership

99.8% of Jack In The Box shares are owned by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 1.4% of Jack In The Box shares are owned by company insiders. Comparatively, 22.1% of shares of all “Hotels, Restaurants & Leisure” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jack In The Box	2.84%	-6.33%	2.75%
Jack In The Box Competitors	2.30%	-40.19%	2.09%

Summary

Jack In The Box rivals beat Jack In The Box on 9 of the 15 factors compared.

Jack In The Box Company Profile

Jack in the Box Inc. operates and franchises Jack in the Box and Del Taco quick-service restaurants in the United States. The company was founded in 1951 and is headquartered in San Diego, California.