Fogo de Chao (NASDAQ: FOGO) and Jack In The Box (NASDAQ:JACK) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Insider and Institutional Ownership

85.7% of Fogo de Chao shares are held by institutional investors. Comparatively, 94.9% of Jack In The Box shares are held by institutional investors. 82.8% of Fogo de Chao shares are held by company insiders. Comparatively, 2.1% of Jack In The Box shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Fogo de Chao and Jack In The Box’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 1.15 $52.73 million $0.79 15.70
Jack In The Box $1.61 billion 1.78 $350.23 million $4.36 22.29

Jack In The Box has higher revenue and earnings than Fogo de Chao. Fogo de Chao is trading at a lower price-to-earnings ratio than Jack In The Box, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Fogo de Chao and Jack In The Box’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%
Jack In The Box 8.51% -37.83% 10.39%

Dividends

Jack In The Box pays an annual dividend of $1.60 per share and has a dividend yield of 1.6%. Fogo de Chao does not pay a dividend. Jack In The Box pays out 36.7% of its earnings in the form of a dividend.

Risk & Volatility

Fogo de Chao has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, Jack In The Box has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Fogo de Chao and Jack In The Box, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fogo de Chao 0 3 3 0 2.50
Jack In The Box 1 3 9 0 2.62

Fogo de Chao currently has a consensus price target of $16.42, suggesting a potential upside of 32.39%. Jack In The Box has a consensus price target of $114.92, suggesting a potential upside of 18.26%. Given Fogo de Chao’s higher possible upside, equities research analysts plainly believe Fogo de Chao is more favorable than Jack In The Box.

Summary

Jack In The Box beats Fogo de Chao on 12 of the 16 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.

Jack In The Box Company Profile

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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