Comparing Jack In The Box (JACK) & Its Peers

Jack In The Box (NASDAQ:JACK) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it compare to its competitors? We will compare Jack In The Box to similar businesses based on the strength of its profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Insider & Institutional Ownership

99.8% of Jack In The Box shares are owned by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 1.4% of Jack In The Box shares are owned by insiders. Comparatively, 22.3% of shares of all “Hotels, Restaurants & Leisure” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets 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	3	12	2	0	1.94
Jack In The Box Competitors	3797	17234	25524	901	2.50

Jack In The Box presently has a consensus target price of $16.83, suggesting a potential upside of 17.14%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 56.09%. Given Jack In The Box’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Jack In The Box has less favorable growth aspects than its competitors.

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	2.84%	-6.33%	2.75%
Jack In The Box Competitors	2.41%	-40.04%	2.14%

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Jack In The Box	$1.47 billion	-$80.72 million	8.31
Jack In The Box Competitors	$3.43 billion	$250.20 million	-161.30

Jack In The Box’s competitors have higher revenue and earnings than Jack In The Box. Jack In The Box is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Jack In The Box has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Jack In The Box’s competitors have a beta of 1.44, meaning that their average stock price is 44% more volatile than the S&P 500.

Summary

Jack In The Box competitors beat Jack In The Box on 8 of the 13 factors compared.

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.