Head-To-Head Contrast: Jack In The Box (JACK) vs. Wingstop (WING)

Wingstop (NASDAQ: WING) and Jack In The Box (NASDAQ:JACK) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitabiliy, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Wingstop and Jack In The Box, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wingstop 0 2 7 1 2.90
Jack In The Box 1 3 9 0 2.62

Wingstop currently has a consensus target price of $34.60, suggesting a potential upside of 14.49%. Jack In The Box has a consensus target price of $117.33, suggesting a potential upside of 10.33%. Given Wingstop’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Wingstop is more favorable than Jack In The Box.

Profitability

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

Net Margins Return on Equity Return on Assets
Wingstop 18.44% -33.91% 16.57%
Jack In The Box 8.07% -49.06% 10.78%

Risk & Volatility

Wingstop has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Jack In The Box has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Wingstop $95.85 million 9.14 $33.58 million $0.60 50.37
Jack In The Box $1.62 billion 1.93 $354.51 million $4.05 26.26

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

Institutional and Insider Ownership

85.7% of Wingstop shares are held by institutional investors. Comparatively, 94.2% of Jack In The Box shares are held by institutional investors. 1.8% of Wingstop shares are held by insiders. Comparatively, 2.1% of Jack In The Box shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Jack In The Box pays an annual dividend of $1.60 per share and has a dividend yield of 1.5%. Wingstop does not pay a dividend. Jack In The Box pays out 39.5% of its earnings in the form of a dividend.

Summary

Wingstop beats Jack In The Box on 10 of the 17 factors compared between the two stocks.

Wingstop Company Profile

Wingstop Inc. is franchisor and operator of restaurants that specializes in cooked-to-order, hand-sauced and tossed chicken wings. The Company operates through two segments: Franchise and Company. As of December 31, 2016, the Company offers its guests 11 flavors on bone-in and boneless chicken wings paired with hand-cut, seasoned fries and sides. It is a casual chicken wings-focused restaurant chain with various concepts, which include wings as add-on menu items or focus on wings in a bar or sports-centric setting. The flavors include Atomic, Mango Habanero, Cajun, Original Hot, Louisiana Rub, Mild, Hickory Smoked BBQ, Lemon Pepper, Garlic Parmesan, Hawaiian and Teriyaki. It offers various order options, including eat-in, to go, individual, combo meals and family packs. The Company maintains Website hosting, and manages the development and maintenance of the mobile Wingstop application. It markets Wingstop products, services and restaurants through the Website, www.wingstop.com.

Jack In The Box Company Profile

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.

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