Luby’s (LUB) vs. J Alexanders (JAX) Critical Contrast

Luby’s (NYSE:LUB) and J Alexanders (NYSE:JAX) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Valuation & Earnings

This table compares Luby’s and J Alexanders’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Luby’s $376.03 million 0.10 -$23.26 million N/A N/A
J Alexanders $233.26 million 0.62 $7.33 million $0.53 18.49

J Alexanders has lower revenue, but higher earnings than Luby’s.

Risk and Volatility

Luby’s has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, J Alexanders has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Luby’s and J Alexanders, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Luby’s 0 0 0 0 N/A
J Alexanders 0 0 0 0 N/A

Profitability

This table compares Luby’s and J Alexanders’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Luby’s -9.43% -11.06% -6.63%
J Alexanders 3.50% 7.55% 5.23%

Insider and Institutional Ownership

36.1% of Luby’s shares are owned by institutional investors. Comparatively, 69.8% of J Alexanders shares are owned by institutional investors. 35.2% of Luby’s shares are owned by company insiders. Comparatively, 15.0% of J Alexanders shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

J Alexanders beats Luby’s on 6 of the 9 factors compared between the two stocks.

Luby’s Company Profile

Luby's, Inc. operates as a multi-brand restaurant company in the United States. The company operates through three segments: Company-Owned Restaurants, Franchise Operations, and Culinary Contract Services. Its primary brands include Luby's Cafeteria, Fuddruckers – World's Greatest Hamburgers, and Luby's Culinary Contract Services; and other brands comprise Cheeseburger in Paradise. The company also provides culinary contract services consisting of contract arrangements to manage food services for clients operating in healthcare, higher education, and corporate dining businesses. As of November 7, 2017, it owned and operated 163 restaurants; operated 23 locations through Culinary Contract Services; and franchised 110 Fuddruckers restaurants. The company was formerly known as Luby's Cafeterias, Inc. Luby's, Inc. was founded in 1947 and is headquartered in Houston, Texas.

J Alexanders Company Profile

J. Alexander's Holdings, Inc., through its subsidiaries, owns and operates full service restaurants in the United States. It operates four complementary upscale dining restaurant concepts, including J. Alexander's, Redlands Grill, Lyndhurst Grill, and Stoney River Steakhouse and Grill (Stoney River). The company's restaurants offer American menu. As of September 19, 2018, it operated 45 restaurants in 16 states. J. Alexander's Holdings, Inc. was founded in 1970 and is headquartered in Nashville, Tennessee.

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