Jamba (JMBA) and Chipotle Mexican Grill (CMG) Critical Survey
Jamba (NASDAQ: JMBA) and Chipotle Mexican Grill (NYSE:CMG) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.
Institutional and Insider Ownership
99.1% of Jamba shares are owned by institutional investors. Comparatively, 90.3% of Chipotle Mexican Grill shares are owned by institutional investors. 15.9% of Jamba shares are owned by company insiders. Comparatively, 2.0% of Chipotle Mexican Grill shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a summary of current ratings and target prices for Jamba and Chipotle Mexican Grill, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chipotle Mexican Grill||4||22||10||0||2.17|
Chipotle Mexican Grill has a consensus target price of $399.03, suggesting a potential upside of 28.57%. Given Chipotle Mexican Grill’s stronger consensus rating and higher probable upside, analysts clearly believe Chipotle Mexican Grill is more favorable than Jamba.
Risk & Volatility
Jamba has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500. Comparatively, Chipotle Mexican Grill has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.
This table compares Jamba and Chipotle Mexican Grill’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chipotle Mexican Grill||3.17%||10.65%||7.38%|
Valuation and Earnings
This table compares Jamba and Chipotle Mexican Grill’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Jamba||$81.90 million||1.90||-$3.64 million||($1.03)||-9.85|
|Chipotle Mexican Grill||$4.31 billion||2.05||$397.78 million||$4.74||65.48|
Chipotle Mexican Grill has higher revenue and earnings than Jamba. Jamba is trading at a lower price-to-earnings ratio than Chipotle Mexican Grill, indicating that it is currently the more affordable of the two stocks.
Chipotle Mexican Grill beats Jamba on 11 of the 13 factors compared between the two stocks.
Jamba Company Profile
Jamba, Inc. is a restaurant retailer of specialty food and beverage offerings. The Company operates through retail segment. The Company’s offerings include whole fruit smoothies, squeezed juices and juice blends, Energy Bowls, and a range of food items including, hot oatmeal, breakfast wraps, sandwiches, Artisan Flatbreads, baked goods and snacks. The Company, through its subsidiary, Jamba Juice Company, operates a lifestyle brand. The Company has a global business driven by a portfolio of franchised and company-owned Jamba Juice stores, and licensed JambaGO and Jamba Juice Express formats. The Company has approximately 890 Jamba Juice stores globally, consisting of over 70 company-owned and operated stores, all located in the United States (Company Stores), approximately 740 franchisee-owned and operated stores (Franchise Stores) in the United States, and over 70 Franchise Stores in international locations (International Stores), collectively the (Jamba System).
Chipotle Mexican Grill Company Profile
Chipotle Mexican Grill, Inc. (Chipotle), together with its subsidiaries, operates Chipotle Mexican Grill restaurants. The Company’s Chipotle Mexican Grill restaurants serve a menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. As of December 31, 2016, the Company managed its operations and restaurants based on 11 regions. As of December 31, 2016, the Company operated 2,198 Chipotle restaurants throughout the United States, as well as 29 international Chipotle restaurants, and it also had 23 restaurants in operation in other non-Chipotle concepts. As of December 31, 2016, 29 of its restaurants were located outside of the United States, with 17 in Canada, six in the United Kingdom, five in France and one in Frankfurt, Germany. The Company sells gift cards, which do not have an expiration date. The Company categorizes its restaurants as end-caps (at the end of a line of retail outlets), in-lines (in a line of retail outlets), free-standing or other.
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