Critical Review: Jollibee Foods (OTCMKTS:JBFCY) and Jack In The Box (NASDAQ:JACK)

Jollibee Foods (OTCMKTS:JBFCY) and Jack In The Box (NASDAQ:JACK) are both consumer cyclical companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.

Institutional and Insider Ownership

0.0% of Jollibee Foods shares are owned by institutional investors. Comparatively, 99.8% of Jack In The Box shares are owned by institutional investors. 1.4% of Jack In The Box shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Jollibee Foods and Jack In The Box’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jollibee Foods	N/A	N/A	N/A
Jack In The Box	-8.69%	-7.12%	2.76%

Earnings & Valuation

This table compares Jollibee Foods and Jack In The Box”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jollibee Foods	N/A	N/A	N/A	$19.16	0.72
Jack In The Box	$1.47 billion	0.17	-$80.72 million	($6.15)	-2.09

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

Analyst Ratings

This is a summary of current ratings for Jollibee Foods and Jack In The Box, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jollibee Foods	0	0	0	0	0.00
Jack In The Box	2	13	4	0	2.11

Jack In The Box has a consensus price target of $23.72, indicating a potential upside of 84.18%. Given Jack In The Box’s stronger consensus rating and higher probable upside, analysts plainly believe Jack In The Box is more favorable than Jollibee Foods.

Summary

Jack In The Box beats Jollibee Foods on 7 of the 11 factors compared between the two stocks.

About Jollibee Foods

Jollibee Foods Corporation develops, operates, and franchises quick service restaurants. The company operates quick-service restaurants under the Jollibee, Chowking, Greenwich, Red Ribbon, Yong He King, Hong Zhuang Yuan, Mang Inasal, Burger King, Highlands Coffee, PHO24, Smashburger, Tim Ho Wan, Tortazo, The Coffee Bean & Tea Leaf, Yoshinoya, Milksha, and Panda Express names in the Philippines, the United States, Canada, the People's Republic of China, the United Kingdom, Italy, Spain, Vietnam, Brunei, Singapore, Saudi Arabia, the United Arab Emirates, Qatar, Oman, Kuwait, Bahrain, Indonesia, Costa Rica, Egypt, Panama, Malaysia, South Korea, Australia, and India. It also offers property leasing, manufacturing, digital printing, advertising, financial accounting, human resources, and logistics services. The company was incorporated in 1978 and is based in Pasig, the Philippines.

About Jack In The Box

Jack in the Box Inc. operates and franchises Jack in the Box and Del Taco quick-service restaurants in the United States. The company was founded in 1951 and is headquartered in San Diego, California.