Jack In The Box (NASDAQ: JACK) is one of 22 publicly-traded companies in the “Quick Service Restaurants” industry, but how does it contrast to its competitors? We will compare Jack In The Box to related businesses based on the strength of its dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Institutional & Insider Ownership
94.9% of Jack In The Box shares are owned by institutional investors. Comparatively, 79.8% of shares of all “Quick Service Restaurants” companies are owned by institutional investors. 2.1% of Jack In The Box shares are owned by company insiders. Comparatively, 16.8% of shares of all “Quick Service Restaurants” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares Jack In The Box and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Jack In The Box||8.51%||-37.83%||10.39%|
|Jack In The Box Competitors||6.90%||12.59%||9.54%|
Jack In The Box pays an annual dividend of $1.60 per share and has a dividend yield of 1.6%. Jack In The Box pays out 36.7% of its earnings in the form of a dividend. As a group, “Quick Service Restaurants” companies pay a dividend yield of 1.5% and pay out 43.1% of their earnings in the form of a dividend. Jack In The Box is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Risk & Volatility
Jack In The Box has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Jack In The Box’s competitors have a beta of 0.53, meaning that their average stock price is 47% less volatile than the S&P 500.
Valuation and Earnings
This table compares Jack In The Box and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Jack In The Box||$1.61 billion||$350.23 million||22.99|
|Jack In The Box Competitors||$3.06 billion||$846.52 million||29.81|
Jack In The Box’s competitors have higher revenue and earnings than Jack In The Box. Jack In The Box is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of current recommendations for Jack In The Box and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Jack In The Box||1||3||10||0||2.64|
|Jack In The Box Competitors||242||1342||1652||81||2.47|
Jack In The Box currently has a consensus target price of $114.15, indicating a potential upside of 13.90%. As a group, “Quick Service Restaurants” companies have a potential upside of 5.33%. Given Jack In The Box’s stronger consensus rating and higher probable upside, analysts plainly believe Jack In The Box is more favorable than its competitors.
Jack In The Box beats its competitors on 9 of the 15 factors compared.
About Jack In The Box
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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