Shake Shack (NYSE: SHAK) and Jamba (NASDAQ:JMBA) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.
Volatility & Risk
Shake Shack has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Jamba has a beta of -0.1, meaning that its share price is 110% less volatile than the S&P 500.
This table compares Shake Shack and Jamba’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Shake Shack and Jamba’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Shake Shack||$358.81 million||4.46||-$320,000.00||$0.57||76.37|
|Jamba||$79.62 million||1.68||-$22.43 million||N/A||N/A|
Shake Shack has higher revenue and earnings than Jamba.
Insider and Institutional Ownership
82.4% of Shake Shack shares are held by institutional investors. Comparatively, 90.6% of Jamba shares are held by institutional investors. 34.9% of Shake Shack shares are held by insiders. Comparatively, 15.9% of Jamba shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a breakdown of current ratings and target prices for Shake Shack and Jamba, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Shake Shack presently has a consensus target price of $40.63, suggesting a potential downside of 6.67%. Given Shake Shack’s higher probable upside, equities analysts plainly believe Shake Shack is more favorable than Jamba.
Shake Shack beats Jamba on 10 of the 11 factors compared between the two stocks.
About Shake Shack
Shake Shack Inc. owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. Its Shacks offers hamburgers, hot dogs, chicken, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. As of December 27, 2017, it had 159 Shacks, including 90 domestic company-operated Shacks, 10 domestic licensed Shacks, and 59 international licensed Shacks. Shake Shack Inc. was founded in 2004 and is headquartered in New York, New York.
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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