Jack In The Box (NASDAQ: JACK) is one of 22 publicly-traded companies in the “Quick Service Restaurants” industry, but how does it weigh in compared to its rivals? We will compare Jack In The Box to similar companies based off the strength of its valuation, profitability, institutional ownership, risk, dividends, analyst recommendations and earnings.

Valuation and Earnings

This table compares Jack In The Box and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Jack In The Box $1.61 billion $350.23 million 21.16
Jack In The Box Competitors $3.06 billion $846.52 million 28.03

Jack In The Box’s rivals 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 rivals, indicating that it is currently the more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations for Jack In The Box and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jack In The Box 1 3 9 0 2.62
Jack In The Box Competitors 326 1450 1650 84 2.43

Jack In The Box presently has a consensus target price of $114.92, indicating a potential upside of 24.58%. All “Quick Service Restaurants” companies have a potential upside of 15.72%. Given Jack In The Box’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Jack In The Box is more favorable than its rivals.

Insider and Institutional Ownership

95.0% of Jack In The Box shares are owned by institutional investors. Comparatively, 81.2% of shares of all “Quick Service Restaurants” companies are owned by institutional investors. 2.1% of Jack In The Box shares are owned by insiders. Comparatively, 16.0% of shares of all “Quick Service Restaurants” companies are owned by 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.

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 8.51% -37.83% 10.39%
Jack In The Box Competitors 6.90% 12.59% 9.54%

Dividends

Jack In The Box pays an annual dividend of $1.60 per share and has a dividend yield of 1.7%. 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 1.6% 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 rivals, given its higher yield and lower payout ratio.

Volatility and Risk

Jack In The Box has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Jack In The Box’s rivals have a beta of 0.53, indicating that their average share price is 47% less volatile than the S&P 500.

Summary

Jack In The Box beats its rivals 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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