CEC Entertainment (CEC) versus Jack in the Box (JACK) Financial Review
CEC Entertainment (NYSE: CEC) and Jack in the Box (NASDAQ:JACK) are both cyclical consumer goods & services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.
Jack in the Box pays an annual dividend of $1.60 per share and has a dividend yield of 1.7%. CEC Entertainment does not pay a dividend. Jack in the Box pays out 35.6% of its earnings in the form of a dividend.
99.0% of Jack in the Box shares are owned by institutional investors. 2.6% of Jack in the Box shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of recent recommendations and price targets for CEC Entertainment and Jack in the Box, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Jack in the Box||0||6||10||0||2.63|
Jack in the Box has a consensus price target of $111.42, indicating a potential upside of 21.63%.
This table compares CEC Entertainment and Jack in the Box’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%|
Volatility & Risk
CEC Entertainment has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Jack in the Box has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.
Valuation and Earnings
This table compares CEC Entertainment and Jack in the Box’s gross 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||1.74||$135.33 million||$4.49||20.40|
Jack in the Box has higher revenue and earnings than CEC Entertainment. CEC Entertainment is trading at a lower price-to-earnings ratio than Jack in the Box, indicating that it is currently the more affordable of the two stocks.
Jack in the Box beats CEC Entertainment on 8 of the 11 factors compared between the two stocks.
CEC Entertainment Company Profile
CEC Entertainment, Inc. is engaged in the family dining and entertainment center business. The Company develops, operates and franchises family dining and entertainment centers under the name Chuck E. Cheese’s. Chuck E. Cheese’s stores feature musical and comic entertainment by robotic and animated characters, arcade-style and skill-oriented games, video games, rides and other activities. All of its stores offer dining selections consisting of a range of beverages, pizzas, sandwiches, appetizers, a salad bar and desserts. As of January 1, 2012, the Company and its franchisees operated a total of 556 Chuck E. Cheese’s stores. As of January 1, 2012, it operated 507 Company-owned Chuck E. Cheese’s stores located in 44 states and Canada and its franchisees operated a total of 49 stores located in 15 states, Puerto Rico, Guam, Guatemala, Chile, Saudi Arabia and the United Arab Emirates. In February 2014, Apollo Global Management, LLC completed the acquisition of CEC Entertainment Inc.
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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