Jack in the Box (NASDAQ: JACK) and Chipotle Mexican Grill (NYSE:CMG) are both mid-cap cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.
Valuation & Earnings
This table compares Jack in the Box and Chipotle Mexican Grill’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Jack in the Box||$1.55 billion||1.83||$135.33 million||$4.49||21.46|
|Chipotle Mexican Grill||$3.90 billion||2.12||$22.93 million||$5.16||56.77|
Jack in the Box has higher earnings, but lower revenue than Chipotle Mexican Grill. Jack in the Box 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.
Jack in the Box pays an annual dividend of $1.60 per share and has a dividend yield of 1.7%. Chipotle Mexican Grill does not pay a dividend. Jack in the Box pays out 35.6% of its earnings in the form of a dividend.
This is a breakdown of recent ratings for Jack in the Box and Chipotle Mexican Grill, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Jack in the Box||0||6||8||0||2.57|
|Chipotle Mexican Grill||4||22||8||0||2.12|
Jack in the Box presently has a consensus target price of $111.58, indicating a potential upside of 15.79%. Chipotle Mexican Grill has a consensus target price of $351.62, indicating a potential upside of 20.03%. Given Chipotle Mexican Grill’s higher possible upside, analysts plainly believe Chipotle Mexican Grill is more favorable than Jack in the Box.
Volatility & Risk
Jack in the Box has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, Chipotle Mexican Grill has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.
Insider & Institutional Ownership
98.7% of Jack in the Box shares are owned by institutional investors. Comparatively, 88.4% of Chipotle Mexican Grill shares are owned by institutional investors. 2.1% of Jack in the Box 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, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Jack in the Box and Chipotle Mexican Grill’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Jack in the Box||8.71%||-30.55%||9.64%|
|Chipotle Mexican Grill||3.37%||11.80%||8.11%|
Jack in the Box beats Chipotle Mexican Grill on 8 of the 15 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 (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.
About Chipotle Mexican Grill
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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