Wingstop (WING) vs. Jamba (JMBA) Critical Comparison

Wingstop (NASDAQ: WING) and Jamba (NASDAQ:JMBA) 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 valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and price targets for Wingstop and Jamba, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wingstop 1 4 7 0 2.50
Jamba 0 0 0 0 N/A

Wingstop presently has a consensus target price of $37.70, indicating a potential downside of 1.69%. Given Wingstop’s higher probable upside, analysts plainly believe Wingstop is more favorable than Jamba.

Profitability

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

Net Margins Return on Equity Return on Assets
Wingstop 20.70% -32.39% 18.34%
Jamba N/A N/A N/A

Insider and Institutional Ownership

92.8% of Jamba shares are held by institutional investors. 1.8% of Wingstop shares are held by company insiders. Comparatively, 15.9% of Jamba shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Wingstop pays an annual dividend of $0.14 per share and has a dividend yield of 0.4%. Jamba does not pay a dividend. Wingstop pays out 19.4% of its earnings in the form of a dividend.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wingstop $91.36 million 12.21 $15.43 million $0.72 53.26
Jamba $161.68 million 0.77 $9.41 million ($1.03) -7.86

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

Risk and Volatility

Wingstop has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Jamba has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Summary

Wingstop beats Jamba on 10 of the 15 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.

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).

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