Jack In The Box (NASDAQ:JACK – Get Free Report) and Meridian (NASDAQ:MRDN – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.
Institutional & Insider Ownership
99.8% of Jack In The Box shares are held by institutional investors. Comparatively, 2.7% of Meridian shares are held by institutional investors. 1.4% of Jack In The Box shares are held by insiders. Comparatively, 9.9% of Meridian shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Jack In The Box has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Meridian has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Jack In The Box and Meridian, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Jack In The Box | 3 | 12 | 2 | 0 | 1.94 |
| Meridian | 1 | 0 | 0 | 0 | 1.00 |
Jack In The Box presently has a consensus price target of $16.83, indicating a potential upside of 29.29%. Meridian has a consensus price target of $21.60, indicating a potential upside of 121.08%. Given Meridian’s higher probable upside, analysts clearly believe Meridian is more favorable than Jack In The Box.
Profitability
This table compares Jack In The Box and Meridian’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Jack In The Box | 2.84% | -6.33% | 2.75% |
| Meridian | -41.41% | -117.87% | -58.87% |
Valuation & Earnings
This table compares Jack In The Box and Meridian”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Jack In The Box | $1.47 billion | 0.17 | -$80.72 million | $1.73 | 7.53 |
| Meridian | $182.86 million | 0.68 | -$89.90 million | ($6.74) | -1.45 |
Jack In The Box has higher revenue and earnings than Meridian. Meridian is trading at a lower price-to-earnings ratio than Jack In The Box, indicating that it is currently the more affordable of the two stocks.
Summary
Jack In The Box beats Meridian on 11 of the 14 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 Meridian
Meridian Holdings Inc is engaged in the online gaming and betting business, providing sports betting, online casino, and gaming operations across multiple jurisdictions in Europe, Africa, and Central and South America. The company has three reportable segments: MeridianBet Group, GMAG, and RKings & CFAC. The MeridianBet Group segment includes retail and online sports betting, casinos, and related gaming operations. The GMAG segment focuses on the resale of third-party gaming content, mainly serving customers in the Asia-Pacific region. The RKings & CFAC segment is involved in pay-to-enter prize competitions and trade promotions conducted in the United Kingdom and Australia. It generates the majority of its revenue from the MeridianBet Group segment.
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