CAVA Group (NYSE:CAVA) versus Jack in the Box (NASDAQ:JACK) Head-To-Head Review

Jack in the Box (NASDAQ:JACK) and CAVA Group (NYSE:CAVA) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Jack in the Box and CAVA Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jack in the Box	1	8	7	0	2.38
CAVA Group	0	8	8	0	2.50

Jack in the Box presently has a consensus target price of $68.63, indicating a potential upside of 56.82%. CAVA Group has a consensus target price of $115.64, indicating a potential downside of 8.22%. Given Jack in the Box’s higher probable upside, equities research analysts clearly believe Jack in the Box is more favorable than CAVA Group.

Volatility & Risk

Jack in the Box has a beta of 1.94, suggesting that its share price is 94% more volatile than the S&P 500. Comparatively, CAVA Group has a beta of 3.33, suggesting that its share price is 233% more volatile than the S&P 500.

Profitability

This table compares Jack in the Box and CAVA Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jack in the Box	-2.30%	-16.46%	4.25%
CAVA Group	5.04%	7.37%	4.25%

Earnings and Valuation

This table compares Jack in the Box and CAVA Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jack in the Box	$1.59 billion	0.53	$130.83 million	$5.68	7.70
CAVA Group	$845.22 million	17.00	$13.28 million	$0.41	307.32

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.

Insider & Institutional Ownership

99.8% of Jack in the Box shares are owned by institutional investors. Comparatively, 73.2% of CAVA Group shares are owned by institutional investors. 1.6% 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 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 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 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.