Contrasting Jack In The Box (JACK) & Its Peers

Jack In The Box (NASDAQ:JACK) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it weigh in compared to its peers? We will compare Jack In The Box to similar businesses based on the strength of its analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Valuation & Earnings

This table compares Jack In The Box and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Jack In The Box	$1.47 billion	-$80.72 million	8.14
Jack In The Box Competitors	$3.31 billion	$250.20 million	-155.59

Jack In The Box’s peers have higher revenue and earnings than Jack In The Box. Jack In The Box is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Jack In The Box and its peers’ 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%
Jack In The Box Competitors	2.31%	-40.03%	2.12%

Insider and Institutional Ownership

99.8% of Jack In The Box shares are owned by institutional investors. Comparatively, 48.7% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 1.4% of Jack In The Box shares are owned by company insiders. Comparatively, 22.3% of shares of all “Hotels, Restaurants & Leisure” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Jack In The Box and its peers, 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
Jack In The Box Competitors	3806	17282	25595	906	2.50

Jack In The Box presently has a consensus price target of $16.83, indicating a potential upside of 19.47%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 58.68%. Given Jack In The Box’s peers stronger consensus rating and higher probable upside, analysts plainly believe Jack In The Box has less favorable growth aspects than its peers.

Volatility & Risk

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, Jack In The Box’s peers have a beta of 1.66, suggesting that their average share price is 66% more volatile than the S&P 500.

Summary

Jack In The Box peers beat Jack In The Box on 8 of the 13 factors compared.

Jack In The Box Company Profile

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.