Popeyes Louisiana Kitchen (NASDAQ: PLKI) and Jack in the Box (NASDAQ:JACK) are both cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Popeyes Louisiana Kitchen and Jack in the Box, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Popeyes Louisiana Kitchen 1 4 1 0 2.00
Jack in the Box 0 7 8 0 2.53

Popeyes Louisiana Kitchen currently has a consensus price target of $69.75, suggesting a potential downside of 11.71%. Jack in the Box has a consensus price target of $111.50, suggesting a potential upside of 18.63%. Given Jack in the Box’s stronger consensus rating and higher probable upside, analysts clearly believe Jack in the Box is more favorable than Popeyes Louisiana Kitchen.

Dividends

Jack in the Box pays an annual dividend of $1.60 per share and has a dividend yield of 1.7%. Popeyes Louisiana Kitchen does not pay a dividend. Jack in the Box pays out 35.6% of its earnings in the form of a dividend.

Profitability

This table compares Popeyes Louisiana Kitchen and Jack in the Box’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Popeyes Louisiana Kitchen 15.08% 490.51% 15.48%
Jack in the Box 8.71% -30.55% 9.64%

Insider and Institutional Ownership

97.6% of Popeyes Louisiana Kitchen shares are held by institutional investors. Comparatively, 98.7% of Jack in the Box shares are held by institutional investors. 2.2% of Popeyes Louisiana Kitchen shares are held by insiders. Comparatively, 2.1% of Jack in the Box shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Popeyes Louisiana Kitchen has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, Jack in the Box has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Earnings and Valuation

This table compares Popeyes Louisiana Kitchen and Jack in the Box’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Popeyes Louisiana Kitchen N/A N/A N/A $1.98 39.90
Jack in the Box $1.55 billion 1.78 $135.33 million $4.49 20.93

Jack in the Box has higher revenue and earnings than Popeyes Louisiana Kitchen. Jack in the Box is trading at a lower price-to-earnings ratio than Popeyes Louisiana Kitchen, indicating that it is currently the more affordable of the two stocks.

Summary

Jack in the Box beats Popeyes Louisiana Kitchen on 8 of the 14 factors compared between the two stocks.

About Popeyes Louisiana Kitchen

Popeyes Louisiana Kitchen, Inc. (Popeyes) develops, operates and franchises quick-service restaurants (QSRs) under the trade names Popeyes Louisiana Kitchen and Popeyes Chicken & Biscuits. The Company conducts its operations through two segments: franchise operations and Company-operated restaurants. The Company-operated restaurant segment includes the operation of Company-owned restaurants. The franchise operations segment consists of domestic and international franchising activities. The Company’s Louisiana style menu features spicy chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. As of December 25, 2016, the Company operated and franchised 2,688 Popeyes restaurants in 48 states, the District of Columbia, three territories and 25 foreign countries. As of December 25, 2016, of the 55 Company-operated restaurants, approximately 84% were concentrated in Louisiana, North Carolina and Tennessee.

About Jack in the Box

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.

Receive News & Ratings for Popeyes Louisiana Kitchen Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Popeyes Louisiana Kitchen and related companies with MarketBeat.com's FREE daily email newsletter.