El Pollo LoCo (NASDAQ: LOCO) and Jack in the Box (NASDAQ:JACK) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.
This table compares El Pollo LoCo and Jack in the Box’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|El Pollo LoCo||0.85%||9.33%||5.77%|
|Jack in the Box||13.10%||-26.21%||10.66%|
This is a breakdown of current recommendations and price targets for El Pollo LoCo and Jack in the Box, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|El Pollo LoCo||0||3||1||0||2.25|
|Jack in the Box||0||7||8||0||2.53|
El Pollo LoCo presently has a consensus price target of $12.00, suggesting a potential upside of 3.45%. Jack in the Box has a consensus price target of $105.50, suggesting a potential upside of 16.60%. Given Jack in the Box’s stronger consensus rating and higher possible upside, analysts plainly believe Jack in the Box is more favorable than El Pollo LoCo.
Volatility & Risk
El Pollo LoCo has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, Jack in the Box has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.
Institutional & Insider Ownership
83.4% of El Pollo LoCo shares are owned by institutional investors. 46.0% of El Pollo LoCo shares are owned by company insiders. Comparatively, 2.6% of Jack in the Box shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares El Pollo LoCo and Jack in the Box’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|El Pollo LoCo||$401.70 million||1.11||$8.61 million||$0.63||18.41|
|Jack in the Box||$1.55 billion||1.66||$135.33 million||$3.88||23.32|
Jack in the Box has higher revenue and earnings than El Pollo LoCo. El Pollo LoCo 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.
Jack in the Box pays an annual dividend of $1.60 per share and has a dividend yield of 1.8%. El Pollo LoCo does not pay a dividend. Jack in the Box pays out 41.2% of its earnings in the form of a dividend. Jack in the Box has increased its dividend for 3 consecutive years.
Jack in the Box beats El Pollo LoCo on 13 of the 17 factors compared between the two stocks.
About El Pollo LoCo
El Pollo Loco Holdings, Inc., through its subsidiary El Pollo Loco, Inc., develops, franchises, licenses, and operates quick-service restaurants under the El Pollo Loco name. The company specializes in offering flame-grilled chicken. As of July 2, 2018, it had approximately 475 company-owned and franchised restaurants in Arizona, California, Nevada, Texas, Utah, and Louisiana. The company was formerly known as Chicken Acquisition Corp. and changed its name to El Pollo Loco Holdings, Inc. in April 2014. El Pollo Loco Holdings, Inc. was founded in 1980 and is headquartered in Costa Mesa, California.
About Jack in the Box
Jack in the Box Inc. operates and franchises Jack in the Box quick-service restaurants. As of April 15, 2018, it operated and franchised 2,245 Jack in the Box restaurants primarily in the western and southern United States and Guam. The company was founded in 1951 and is headquartered in San Diego, California.
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