Analyzing Del Taco Restaurants (TACO) & Jamba (JMBA)
Del Taco Restaurants (NASDAQ: TACO) and Jamba (NASDAQ:JMBA) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Insider & Institutional Ownership
65.8% of Del Taco Restaurants shares are held by institutional investors. Comparatively, 99.2% of Jamba shares are held by institutional investors. 14.6% of Del Taco Restaurants shares are held by company insiders. Comparatively, 15.9% of Jamba shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and recommmendations for Del Taco Restaurants and Jamba, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Del Taco Restaurants||0||1||5||0||2.83|
Del Taco Restaurants presently has a consensus price target of $15.67, suggesting a potential upside of 21.54%. Given Del Taco Restaurants’ stronger consensus rating and higher probable upside, analysts plainly believe Del Taco Restaurants is more favorable than Jamba.
Earnings and Valuation
This table compares Del Taco Restaurants and Jamba’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Del Taco Restaurants||$468.58 million||1.06||$67.62 million||$0.56||23.02|
|Jamba||$81.90 million||1.71||-$3.64 million||($1.03)||-8.84|
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.
Risk & Volatility
Del Taco Restaurants has a beta of -0.21, meaning that its share price is 121% less volatile than the S&P 500. Comparatively, Jamba has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500.
This table compares Del Taco Restaurants and Jamba’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Del Taco Restaurants||4.81%||5.90%||3.08%|
Del Taco Restaurants beats Jamba on 9 of the 13 factors compared between the two stocks.
About Del Taco Restaurants
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.
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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