Jack in the Box (NASDAQ:JACK) and Del Frisco’s Restaurant Group (NASDAQ:DFRG) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Risk and Volatility

Jack in the Box has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Del Frisco’s Restaurant Group has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Institutional and Insider Ownership

98.9% of Jack in the Box shares are owned by institutional investors. Comparatively, 63.4% of Del Frisco’s Restaurant Group shares are owned by institutional investors. 2.6% of Jack in the Box shares are owned by insiders. Comparatively, 3.2% of Del Frisco’s Restaurant Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Jack in the Box and Del Frisco’s Restaurant Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jack in the Box 13.10% -26.21% 10.66%
Del Frisco’s Restaurant Group -4.81% 7.14% 4.06%

Dividends

Jack in the Box pays an annual dividend of $1.60 per share and has a dividend yield of 1.9%. Del Frisco’s Restaurant Group does not pay a dividend. Jack in the Box pays out 41.2% of its earnings in the form of a dividend. Jack in the Box has raised its dividend for 3 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Jack in the Box and Del Frisco’s Restaurant Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jack in the Box 0 7 8 0 2.53
Del Frisco’s Restaurant Group 0 3 3 0 2.50

Jack in the Box currently has a consensus target price of $105.50, suggesting a potential upside of 24.21%. Del Frisco’s Restaurant Group has a consensus target price of $14.38, suggesting a potential upside of 70.12%. Given Del Frisco’s Restaurant Group’s higher possible upside, analysts clearly believe Del Frisco’s Restaurant Group is more favorable than Jack in the Box.

Earnings and Valuation

This table compares Jack in the Box and Del Frisco’s Restaurant Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jack in the Box $1.55 billion 1.49 $135.33 million $3.88 21.89
Del Frisco’s Restaurant Group $361.43 million 0.74 -$11.45 million $0.75 11.27

Jack in the Box has higher revenue and earnings than Del Frisco’s Restaurant Group. Del Frisco’s Restaurant Group 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.

Summary

Jack in the Box beats Del Frisco’s Restaurant Group on 12 of the 17 factors compared between the two stocks.

About Jack in the Box

Jack in the Box Inc. operates and franchises Jack in the Box quick-service restaurants. As of April 15, 2018, it operated and franchised 2,245 Jack in the Box restaurants primarily in the western and southern United States and Guam. The company was founded in 1951 and is headquartered in San Diego, California.

About Del Frisco’s Restaurant Group

Del Frisco's Restaurant Group, Inc. develops, owns, and operates restaurants in the United States. It owns and operates restaurants under the Del Frisco's Double Eagle Steak House, Sullivan's Steakhouse, Del Frisco's Grille, Barcelona Wine Bar, and bartaco brand names. The company offers steaks, as well as other menu selections, such as chops, fresh seafood, tapas, street food, and wines and cocktails. It operates 84 restaurants in 24 states and the District of Columbia. The company was founded in 1981 and is headquartered in Irving, Texas.

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