Greggs (OTCMKTS:GGGSF – Get Free Report) and Jack In The Box (NASDAQ:JACK – Get Free Report) are both consumer cyclical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.
Profitability
This table compares Greggs and Jack In The Box’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Greggs | N/A | N/A | N/A |
| Jack In The Box | -5.51% | -9.23% | 3.23% |
Earnings & Valuation
This table compares Greggs and Jack In The Box”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Greggs | N/A | N/A | N/A | $0.21 | 109.17 |
| Jack In The Box | $1.47 billion | 0.25 | -$80.72 million | ($4.27) | -4.55 |
Greggs has higher earnings, but lower revenue than Jack In The Box. Jack In The Box is trading at a lower price-to-earnings ratio than Greggs, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
42.1% of Greggs shares are held by institutional investors. Comparatively, 99.8% of Jack In The Box shares are held by institutional investors. 1.4% 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 will outperform the market over the long term.
Analyst Ratings
This is a summary of current recommendations and price targets for Greggs and Jack In The Box, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Greggs | 1 | 0 | 1 | 0 | 2.00 |
| Jack In The Box | 3 | 13 | 5 | 0 | 2.10 |
Jack In The Box has a consensus target price of $24.33, suggesting a potential upside of 25.32%. Given Jack In The Box’s stronger consensus rating and higher possible upside, analysts plainly believe Jack In The Box is more favorable than Greggs.
Summary
Jack In The Box beats Greggs on 7 of the 11 factors compared between the two stocks.
About Greggs
Greggs plc operates as a food-on-the-go retailer in the United Kingdom. It offers a range of fresh bakery products, sandwiches, and drinks. The company sells products to franchise and wholesale partners for sale in their own outlets. It is also involved in the property holding, non-trading, and trustee businesses. The company also operates through its own shops. Greggs plc was founded in 1939 and is headquartered in Newcastle upon Tyne, the United Kingdom.
About Jack In The Box
Jack in the Box Inc. operates and franchises Jack in the Box and Del Taco quick-service restaurants in the United States. The company was founded in 1951 and is headquartered in San Diego, California.
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