Jamba (JMBA) & Noodles & (NDLS) Critical Analysis

Jamba (NASDAQ: JMBA) and Noodles & (NASDAQ:NDLS) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Valuation and Earnings

This table compares Jamba and Noodles &’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Jamba $161.68 million 0.77 $9.41 million ($1.03) -7.84
Noodles & $487.47 million 0.37 -$71.67 million ($3.04) -1.51

Jamba has higher revenue, but lower earnings than Noodles &. Jamba is trading at a lower price-to-earnings ratio than Noodles &, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

65.4% of Noodles & shares are owned by institutional investors. 15.9% of Jamba shares are owned by company insiders. Comparatively, 52.7% of Noodles & shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Jamba and Noodles &’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jamba N/A N/A N/A
Noodles & -17.41% -6.83% -1.19%

Risk and Volatility

Jamba has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500. Comparatively, Noodles & has a beta of -0.52, indicating that its share price is 152% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Jamba and Noodles &, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jamba 0 1 0 0 2.00
Noodles & 1 5 0 0 1.83

Noodles & has a consensus target price of $4.67, suggesting a potential upside of 1.45%. Given Noodles &’s higher possible upside, analysts plainly believe Noodles & is more favorable than Jamba.

Summary

Jamba beats Noodles & on 8 of the 12 factors compared between the two stocks.

Jamba Company Profile

Jamba, Inc. is a restaurant retailer of specialty food and beverage offerings. The Company operates through retail segment. The Company’s offerings include whole fruit smoothies, squeezed juices and juice blends, Energy Bowls, and a range of food items including, hot oatmeal, breakfast wraps, sandwiches, Artisan Flatbreads, baked goods and snacks. The Company, through its subsidiary, Jamba Juice Company, operates a lifestyle brand. The Company has a global business driven by a portfolio of franchised and company-owned Jamba Juice stores, and licensed JambaGO and Jamba Juice Express formats. The Company has approximately 890 Jamba Juice stores globally, consisting of over 70 company-owned and operated stores, all located in the United States (Company Stores), approximately 740 franchisee-owned and operated stores (Franchise Stores) in the United States, and over 70 Franchise Stores in international locations (International Stores), collectively the (Jamba System).

Noodles & Company Profile

Noodles & Company develops and operates fast casual restaurants. The Company’s menu includes a range of cooked-to-order dishes, including noodles and pasta, soups, salads, sandwiches and appetizers. The Company has approximately 490 restaurants, including 420 Company-owned and 70 franchised locations, across 40 states, the District of Columbia and one Canadian province. The Company offers over 30 globally inspired Asian, Mediterranean and American dishes together on a single menu. The Company offers approximately 10 fresh vegetables and six proteins, including marinated steak, naturally raised pork, chicken, meatballs, shrimp and organic tofu. The Company offers Kids Meals, which includes sides, such as broccoli, carrots, fruit, applesauce and a portion of its housemade rice crispy treat. The Company’s restaurants’ locations include Arizona, California, Colorado, Delaware, New York, North Dakota, Ohio, Texas, Utah, Virginia, Washington and Wisconsin.

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