Jack In The Box (NASDAQ:JACK – Get Free Report) and Target Hospitality (NASDAQ:TH – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Profitability
This table compares Jack In The Box and Target Hospitality’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Jack In The Box | 2.84% | -6.33% | 2.75% |
| Target Hospitality | -10.85% | -9.80% | -6.65% |
Volatility and Risk
Jack In The Box has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Target Hospitality has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Jack In The Box | $1.47 billion | 0.18 | -$80.72 million | $1.73 | 8.10 |
| Target Hospitality | $320.64 million | 4.33 | -$37.12 million | ($0.38) | -36.68 |
Target Hospitality has lower revenue, but higher earnings 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.
Institutional & Insider Ownership
99.8% of Jack In The Box shares are owned by institutional investors. Comparatively, 32.4% of Target Hospitality shares are owned by institutional investors. 1.4% of Jack In The Box shares are owned by insiders. Comparatively, 3.8% of Target Hospitality shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of current recommendations and price targets for Jack In The Box and Target Hospitality, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Jack In The Box | 3 | 12 | 2 | 0 | 1.94 |
| Target Hospitality | 1 | 0 | 4 | 1 | 2.83 |
Jack In The Box presently has a consensus target price of $16.83, indicating a potential upside of 20.11%. Target Hospitality has a consensus target price of $25.20, indicating a potential upside of 80.80%. Given Target Hospitality’s stronger consensus rating and higher probable upside, analysts clearly believe Target Hospitality is more favorable than Jack In The Box.
Summary
Target Hospitality beats Jack In The Box on 8 of the 15 factors compared between the two stocks.
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.
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.
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