McDonald’s Corporation (NYSE: MCD) and Jamba (NASDAQ:JMBA) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.
Insider & Institutional Ownership
68.0% of McDonald’s Corporation shares are owned by institutional investors. Comparatively, 99.1% of Jamba shares are owned by institutional investors. 0.2% of McDonald’s Corporation shares are owned by insiders. Comparatively, 15.9% of Jamba shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
McDonald’s Corporation has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Jamba has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for McDonald’s Corporation and Jamba, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
McDonald’s Corporation currently has a consensus price target of $162.16, suggesting a potential upside of 3.34%. Given McDonald’s Corporation’s stronger consensus rating and higher probable upside, research analysts plainly believe McDonald’s Corporation is more favorable than Jamba.
McDonald’s Corporation pays an annual dividend of $3.76 per share and has a dividend yield of 2.4%. Jamba does not pay a dividend. McDonald’s Corporation pays out 61.5% of its earnings in the form of a dividend. Jamba has raised its dividend for 40 consecutive years.
This table compares McDonald’s Corporation and Jamba’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares McDonald’s Corporation and Jamba’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|McDonald’s Corporation||$24.18 billion||5.26||$9.60 billion||$6.11||25.68|
|Jamba||$81.90 million||1.69||-$3.64 million||($1.03)||-8.77|
McDonald’s Corporation has higher revenue and earnings than Jamba. Jamba is trading at a lower price-to-earnings ratio than McDonald’s Corporation, indicating that it is currently the more affordable of the two stocks.
McDonald’s Corporation beats Jamba on 11 of the 16 factors compared between the two stocks.
McDonald’s Corporation Company Profile
McDonald’s Corporation (McDonald’s) operates and franchises McDonald’s restaurants. The Company’s restaurants serve a locally relevant menu of food and drinks sold at various price points in over 100 countries. The Company’s segments include U.S., International Lead Markets, High Growth Markets, and Foundational Markets and Corporate. The U.S. segment focuses on offering a platform for authentic ingredients that allows customers to customize their sandwiches. Its High Growth Markets segment includes its operations in markets, such as China, Italy, Korea, Poland, Russia, Spain, Switzerland, the Netherlands and related markets. The International Lead markets segment includes the Company’s operations in various markets, such as Australia, Canada, France, Germany, the United Kingdom and related markets. The Foundational markets and Corporate segment is engaged in operating restaurants and increasing convenience to customers, including through drive-thru and delivery.
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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