Jack In The Box (NASDAQ: JACK) is one of 22 publicly-traded companies in the “Quick Service Restaurants” industry, but how does it weigh in compared to its peers? We will compare Jack In The Box to similar businesses based on the strength of its analyst recommendations, institutional ownership, dividends, profitability, earnings, valuation and risk.

Volatility and Risk

Jack In The Box has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Jack In The Box’s peers have a beta of 0.53, meaning that their average stock price is 47% less volatile than the S&P 500.

Institutional and Insider Ownership

94.9% of Jack In The Box shares are held by institutional investors. Comparatively, 79.8% of shares of all “Quick Service Restaurants” companies are held by institutional investors. 2.1% of Jack In The Box shares are held by company insiders. Comparatively, 16.8% of shares of all “Quick Service Restaurants” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Jack In The Box and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jack In The Box 8.51% -37.83% 10.39%
Jack In The Box Competitors 6.50% 11.59% 9.40%

Valuation & Earnings

This table compares Jack In The Box and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Jack In The Box $1.61 billion $350.23 million 23.40
Jack In The Box Competitors $3.06 billion $846.52 million 29.89

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

Dividends

Jack In The Box pays an annual dividend of $1.60 per share and has a dividend yield of 1.6%. Jack In The Box pays out 36.7% of its earnings in the form of a dividend. As a group, “Quick Service Restaurants” companies pay a dividend yield of 1.5% and pay out 43.1% of their earnings in the form of a dividend. Jack In The Box is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings for Jack In The Box and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jack In The Box 1 3 10 0 2.64
Jack In The Box Competitors 241 1334 1640 81 2.47

Jack In The Box currently has a consensus price target of $114.15, indicating a potential upside of 11.89%. As a group, “Quick Service Restaurants” companies have a potential upside of 8.62%. Given Jack In The Box’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Jack In The Box is more favorable than its peers.

Summary

Jack In The Box beats its peers on 9 of the 15 factors compared.

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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