Target Hospitality (NASDAQ:TH – Get Free Report) and Jack In The Box (NASDAQ:JACK – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.
Valuation & Earnings
This table compares Target Hospitality and Jack In The Box”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Target Hospitality | $320.64 million | 4.42 | -$37.12 million | ($0.38) | -37.41 |
| Jack In The Box | $1.47 billion | 0.14 | -$80.72 million | $1.73 | 6.37 |
Target Hospitality has higher earnings, but lower revenue than Jack In The Box. Target Hospitality 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.
Profitability
This table compares Target Hospitality and Jack In The Box’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Target Hospitality | -10.85% | -9.80% | -6.65% |
| Jack In The Box | 2.84% | -6.33% | 2.75% |
Volatility & Risk
Target Hospitality has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500. Comparatively, Jack In The Box has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Target Hospitality and Jack In The Box, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Target Hospitality | 1 | 0 | 4 | 1 | 2.83 |
| Jack In The Box | 3 | 12 | 2 | 0 | 1.94 |
Target Hospitality presently has a consensus target price of $25.20, indicating a potential upside of 77.25%. Jack In The Box has a consensus target price of $16.83, indicating a potential upside of 52.68%. Given Target Hospitality’s stronger consensus rating and higher probable upside, research analysts clearly believe Target Hospitality is more favorable than Jack In The Box.
Insider & Institutional Ownership
32.4% of Target Hospitality shares are owned by institutional investors. Comparatively, 99.8% of Jack In The Box shares are owned by institutional investors. 3.8% of Target Hospitality shares are owned by insiders. Comparatively, 1.4% of Jack In The Box shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Target Hospitality beats Jack In The Box on 8 of the 15 factors compared between the two stocks.
About Target Hospitality
Target Hospitality Corp. operates as a specialty rental and hospitality services company in North America. The company operates through two segments, Hospitality & Facilities Services – South and Government. It owns a network of specialty rental accommodation units. In addition, the company provides catering and food, maintenance, housekeeping, grounds-keeping, security, health and recreation facilities, workforce community management, concierge, and laundry services. It serves the U.S. government contractors and investment grade natural resource development companies. Target Hospitality Corp. was founded in 1978 and is headquartered in The Woodlands, Texas.
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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