Financial Review: Jack In The Box (NASDAQ:JACK) versus MTY Food Group (OTCMKTS:MTYFF)

Jack In The Box (NASDAQ:JACK) and MTY Food Group (OTCMKTS:MTYFF) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Profitability

This table compares Jack In The Box and MTY Food Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jack In The Box	-8.69%	-7.12%	2.76%
MTY Food Group	N/A	N/A	N/A

Institutional and Insider Ownership

99.8% of Jack In The Box shares are held by institutional investors. Comparatively, 25.1% of MTY Food Group shares are held by institutional investors. 1.4% of Jack In The Box shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Jack In The Box and MTY Food Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jack In The Box	$1.47 billion	0.17	-$80.72 million	($6.15)	-2.10
MTY Food Group	N/A	N/A	N/A	$1.41	20.89

MTY Food Group has lower revenue, but higher earnings than Jack In The Box. Jack In The Box is trading at a lower price-to-earnings ratio than MTY Food Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Jack In The Box and MTY Food Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jack In The Box	2	12	4	0	2.11
MTY Food Group	0	3	0	0	2.00

Jack In The Box currently has a consensus target price of $22.18, indicating a potential upside of 71.64%. Given Jack In The Box’s stronger consensus rating and higher possible upside, equities analysts clearly believe Jack In The Box is more favorable than MTY Food Group.

Summary

Jack In The Box beats MTY Food Group on 7 of the 11 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 MTY Food Group

MTY Food Group Inc. operates and franchises quick-service, fast-casual, and casual dining restaurants in Canada, the United States, and internationally. It also sells retail products under a multitude of banners. The company was formerly known as iNsu Innovations Group Inc. and changed its name to MTY Food Group Inc. in July 2003. MTY Food Group Inc. was founded in 1979 and is headquartered in Saint-Laurent, Canada.