Critical Contrast: Jamba (JMBA) & Arcos Dorados Holdings (ARCO)
Arcos Dorados Holdings (NYSE: ARCO) and Jamba (NASDAQ:JMBA) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.
Valuation and Earnings
This table compares Arcos Dorados Holdings and Jamba’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Arcos Dorados Holdings||$3.16 billion||0.68||$249.87 million||$0.26||39.42|
|Jamba||$81.90 million||1.61||-$3.64 million||($1.03)||-8.33|
Arcos Dorados Holdings has higher revenue and earnings than Jamba. Jamba is trading at a lower price-to-earnings ratio than Arcos Dorados Holdings, indicating that it is currently the more affordable of the two stocks.
This table compares Arcos Dorados Holdings and Jamba’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Arcos Dorados Holdings||1.76%||14.68%||3.69%|
Volatility & Risk
Arcos Dorados Holdings has a beta of 2.15, indicating that its share price is 115% more volatile than the S&P 500. Comparatively, Jamba has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Arcos Dorados Holdings and Jamba, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Arcos Dorados Holdings||0||0||3||0||3.00|
Arcos Dorados Holdings presently has a consensus price target of $9.53, indicating a potential downside of 6.99%. Given Arcos Dorados Holdings’ stronger consensus rating and higher possible upside, analysts plainly believe Arcos Dorados Holdings is more favorable than Jamba.
Institutional & Insider Ownership
36.7% of Arcos Dorados Holdings shares are owned by institutional investors. Comparatively, 99.1% of Jamba shares are owned by institutional investors. 15.9% of Jamba shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Arcos Dorados Holdings beats Jamba on 10 of the 13 factors compared between the two stocks.
Arcos Dorados Holdings Company Profile
Arcos Dorados Holdings Inc. is a McDonald’s franchisee. The Company operates or franchises over 2,140 McDonald’s-branded restaurants. It divides its operations into four geographical divisions: Brazil; the Caribbean division, consisting of Aruba, Colombia, Curacao, French Guiana, Guadeloupe, Martinique, Puerto Rico, Trinidad and Tobago, the United States Virgin Islands of Saint Croix and Saint Thomas, and Venezuela; the North Latin America division (NOLAD), consisting of Costa Rica, Mexico and Panama, and the South Latin America division (SLAD), consisting of Argentina, Chile, Ecuador, Peru and Uruguay. Its menus feature over three tiers of products: entry-level options, such as its Big Pleasures, Small Prices offerings and Almuerzos Colombianos (Colombian Lunches) in Colombia; core menu options, such as the Big Mac, Happy Meal and Quarter Pounder, and premium options, such as Big Tasty or Angus premium hamburgers and chicken sandwiches and low-calorie or low-sodium products.
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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