Jack in the Box (NASDAQ: JACK) and Popeyes Louisiana Kitchen (NASDAQ:PLKI) are both cyclical consumer goods & services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.
Insider & Institutional Ownership
99.1% of Jack in the Box shares are held by institutional investors. Comparatively, 97.6% of Popeyes Louisiana Kitchen shares are held by institutional investors. 2.1% of Jack in the Box shares are held by company insiders. Comparatively, 2.2% of Popeyes Louisiana Kitchen shares are held by company 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.
This table compares Jack in the Box and Popeyes Louisiana Kitchen’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Jack in the Box||$1.55 billion||1.73||$135.33 million||$4.49||20.33|
|Popeyes Louisiana Kitchen||N/A||N/A||N/A||$1.98||39.90|
Jack in the Box has higher revenue and earnings than Popeyes Louisiana Kitchen. Jack in the Box is trading at a lower price-to-earnings ratio than Popeyes Louisiana Kitchen, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Jack in the Box has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Popeyes Louisiana Kitchen has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500.
This table compares Jack in the Box and Popeyes Louisiana Kitchen’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Jack in the Box||8.71%||-30.55%||9.64%|
|Popeyes Louisiana Kitchen||15.08%||490.51%||15.48%|
Jack in the Box pays an annual dividend of $1.60 per share and has a dividend yield of 1.8%. Popeyes Louisiana Kitchen does not pay a dividend. Jack in the Box pays out 35.6% of its earnings in the form of a dividend.
This is a summary of current ratings and recommmendations for Jack in the Box and Popeyes Louisiana Kitchen, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Jack in the Box||0||8||7||0||2.47|
|Popeyes Louisiana Kitchen||1||4||1||0||2.00|
Jack in the Box currently has a consensus price target of $111.50, suggesting a potential upside of 22.18%. Popeyes Louisiana Kitchen has a consensus price target of $69.75, suggesting a potential downside of 11.71%. Given Jack in the Box’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Jack in the Box is more favorable than Popeyes Louisiana Kitchen.
Jack in the Box beats Popeyes Louisiana Kitchen on 8 of the 14 factors compared between the two stocks.
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.
Popeyes Louisiana Kitchen Company Profile
Popeyes Louisiana Kitchen, Inc. (Popeyes) develops, operates and franchises quick-service restaurants (QSRs) under the trade names Popeyes Louisiana Kitchen and Popeyes Chicken & Biscuits. The Company conducts its operations through two segments: franchise operations and Company-operated restaurants. The Company-operated restaurant segment includes the operation of Company-owned restaurants. The franchise operations segment consists of domestic and international franchising activities. The Company’s Louisiana style menu features spicy chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. As of December 25, 2016, the Company operated and franchised 2,688 Popeyes restaurants in 48 states, the District of Columbia, three territories and 25 foreign countries. As of December 25, 2016, of the 55 Company-operated restaurants, approximately 84% were concentrated in Louisiana, North Carolina and Tennessee.
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