Fogo de Chao (NASDAQ: FOGO) and Jamba (NASDAQ:JMBA) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.
Insider and Institutional Ownership
75.4% of Fogo de Chao shares are owned by institutional investors. Comparatively, 99.2% of Jamba shares are owned by institutional investors. 82.8% of Fogo de Chao shares are owned by company insiders. Comparatively, 15.9% of Jamba shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of recent ratings for Fogo de Chao and Jamba, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fogo de Chao||0||3||3||0||2.50|
Fogo de Chao currently has a consensus price target of $16.42, indicating a potential upside of 24.37%. Given Fogo de Chao’s stronger consensus rating and higher possible upside, analysts clearly believe Fogo de Chao is more favorable than Jamba.
This table compares Fogo de Chao and Jamba’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fogo de Chao||7.40%||8.08%||4.58%|
Valuation and Earnings
This table compares Fogo de Chao and Jamba’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Fogo de Chao||$304.00 million||1.23||$52.73 million||$0.79||16.71|
|Jamba||$81.90 million||1.80||-$3.64 million||($1.03)||-9.33|
Fogo de Chao has higher revenue and earnings than Jamba. Jamba is trading at a lower price-to-earnings ratio than Fogo de Chao, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Fogo de Chao has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, Jamba has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500.
Fogo de Chao beats Jamba on 11 of the 13 factors compared between the two stocks.
Fogo de Chao Company Profile
Fogo de Chao, Inc. is a United States-based holding company. The Company, through its subsidiaries, operates upscale Brazilian churrascaria steakhouses under the brand of Fogo de Chao. The Company owns 100% of Brasa (Purchaser) Inc. (Brasa Purchaser), which owns 100% of Brasa (Holdings) Inc. (Brasa Holdings). The Company operates through two segments: United States and Brazil. It specializes in fire-roasting meats utilizing the centuries-old Southern Brazilian cooking technique of churrasco. The Company offers its guests a tasting menu of meats featuring up to 20 cuts, simply seasoned and fire-roasted to expose their natural flavors. The Company operates approximately 26 restaurants in the United States, 10 in Brazil and one in Mexico. The Company operates a range of restaurant formats, including in-line and free-standing locations. Its restaurants range in size from approximately 7,000 to 16,000 square feet, with seating from 200 to 500 guests.
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).
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