Reviewing Jack In The Box (NASDAQ:JACK) & Pizza Pizza Royalty (OTCMKTS:PZRIF)

Jack In The Box (NASDAQ:JACK) and Pizza Pizza Royalty (OTCMKTS:PZRIF) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Profitability

This table compares Jack In The Box and Pizza Pizza Royalty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jack In The Box	-4.34%	-11.31%	3.82%
Pizza Pizza Royalty	N/A	N/A	N/A

Dividends

Jack In The Box pays an annual dividend of $1.76 per share and has a dividend yield of 11.8%. Pizza Pizza Royalty pays an annual dividend of $0.79 per share and has a dividend yield of 7.8%. Jack In The Box pays out -51.0% of its earnings in the form of a dividend. Pizza Pizza Royalty pays out 97.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Jack In The Box is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

99.8% of Jack In The Box shares are owned by institutional investors. Comparatively, 35.5% of Pizza Pizza Royalty shares are owned by institutional investors. 1.4% of Jack In The Box 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.

Valuation and Earnings

This table compares Jack In The Box and Pizza Pizza Royalty”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jack In The Box	$1.49 billion	0.19	-$36.69 million	($3.45)	-4.33
Pizza Pizza Royalty	N/A	N/A	N/A	$0.81	12.48

Pizza Pizza Royalty has lower revenue, but higher earnings than Jack In The Box. Jack In The Box is trading at a lower price-to-earnings ratio than Pizza Pizza Royalty, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and target prices for Jack In The Box and Pizza Pizza Royalty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jack In The Box	3	12	5	0	2.10
Pizza Pizza Royalty	0	1	0	0	2.00

Jack In The Box currently has a consensus price target of $27.89, suggesting a potential upside of 86.71%. Given Jack In The Box’s stronger consensus rating and higher possible upside, analysts clearly believe Jack In The Box is more favorable than Pizza Pizza Royalty.

Summary

Jack In The Box beats Pizza Pizza Royalty on 9 of the 13 factors compared between the two stocks.

About Jack In The Box

Jack in the Box Inc. operates and franchises Jack in the Box and Del Taco quick-service restaurants in the United States. The company was founded in 1951 and is headquartered in San Diego, California.

About Pizza Pizza Royalty

Pizza Pizza Royalty Corp., through its subsidiary, Pizza Pizza Royalty Limited Partnership, owns and franchises quick service restaurants under the Pizza Pizza and Pizza 73 brands in Canada. The company was founded in 1967 and is headquartered in Toronto, Canada.