Reviewing Jack in the Box (NASDAQ:JACK) and CAVA Group (NYSE:CAVA)
by Scott Moore · The Cerbat GemCAVA Group (NYSE:CAVA – Get Free Report) and Jack in the Box (NASDAQ:JACK – Get Free Report) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.
Valuation & Earnings
This table compares CAVA Group and Jack in the Box”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CAVA Group | $845.22 million | 17.00 | $13.28 million | $0.41 | 307.32 |
| Jack in the Box | $1.59 billion | 0.53 | $130.83 million | $5.68 | 7.70 |
Jack in the Box has higher revenue and earnings than CAVA Group. Jack in the Box is trading at a lower price-to-earnings ratio than CAVA Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
CAVA Group has a beta of 3.33, indicating that its share price is 233% more volatile than the S&P 500. Comparatively, Jack in the Box has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500.
Profitability
This table compares CAVA Group and Jack in the Box’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CAVA Group | 5.04% | 7.37% | 4.25% |
| Jack in the Box | -2.30% | -16.46% | 4.25% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for CAVA Group and Jack in the Box, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CAVA Group | 0 | 8 | 8 | 0 | 2.50 |
| Jack in the Box | 1 | 8 | 7 | 0 | 2.38 |
CAVA Group currently has a consensus price target of $115.64, suggesting a potential downside of 8.22%. Jack in the Box has a consensus price target of $68.63, suggesting a potential upside of 56.82%. Given Jack in the Box’s higher possible upside, analysts clearly believe Jack in the Box is more favorable than CAVA Group.
Institutional & Insider Ownership
73.2% of CAVA Group shares are held by institutional investors. Comparatively, 99.8% of Jack in the Box shares are held by institutional investors. 1.6% of Jack in the Box shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
CAVA Group beats Jack in the Box on 7 of the 13 factors compared between the two stocks.
About CAVA Group
CAVA Group, Inc. owns and operates a chain of restaurants under the CAVA brand in the United States. The company also offers dips, spreads, and dressings through grocery stores. In addition, the company provides online and mobile ordering platforms. Cava Group, Inc. was founded in 2006 and is headquartered in Washington, the District of Columbia.
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.