Jack In The Box (NASDAQ: JACK) is one of 22 public companies in the “Quick Service Restaurants” industry, but how does it compare to its competitors? We will compare Jack In The Box to related businesses based on the strength of its dividends, analyst recommendations, earnings, institutional ownership, profitability, risk and valuation.

Profitability

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%

Earnings and Valuation

This table compares Jack In The Box and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Jack In The Box $1.61 billion $350.23 million 23.03
Jack In The Box Competitors $3.06 billion $846.52 million 29.66

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.

Institutional and 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 insiders. Comparatively, 16.8% of shares of all “Quick Service Restaurants” companies are owned by 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.

Volatility & Risk

Jack In The Box has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Jack In The Box’s competitors have a beta of 0.53, suggesting that their average share price is 47% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Jack In The Box and its competitors, as provided by MarketBeat.

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 241 1331 1636 81 2.47

Jack In The Box currently has a consensus price target of $114.15, suggesting a potential upside of 13.71%. As a group, “Quick Service Restaurants” companies have a potential upside of 9.91%. Given Jack In The Box’s stronger consensus rating and higher probable upside, research analysts clearly believe Jack In The Box is more favorable than its competitors.

Dividends

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.

Summary

Jack In The Box beats its competitors on 9 of the 15 factors compared.

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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