Jamba (NASDAQ: JMBA) and Arcos Dorados Holdings (NYSE:ARCO) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.

Analyst Ratings

This is a summary of current ratings and target prices for Jamba and Arcos Dorados Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jamba 0 1 0 0 2.00
Arcos Dorados Holdings 0 0 3 0 3.00

Arcos Dorados Holdings has a consensus price target of $9.53, indicating a potential downside of 3.21%. Given Arcos Dorados Holdings’ stronger consensus rating and higher probable upside, analysts plainly believe Arcos Dorados Holdings is more favorable than Jamba.

Risk & Volatility

Jamba has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500. Comparatively, Arcos Dorados Holdings has a beta of 2.16, indicating that its stock price is 116% more volatile than the S&P 500.

Profitability

This table compares Jamba and Arcos Dorados Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jamba N/A N/A N/A
Arcos Dorados Holdings 1.76% 14.68% 3.69%

Valuation & Earnings

This table compares Jamba and Arcos Dorados Holdings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Jamba $81.90 million 1.56 -$3.64 million ($1.03) -8.09
Arcos Dorados Holdings $3.16 billion 0.66 $249.87 million $0.26 37.88

Arcos Dorados Holdings has higher revenue and earnings than Jamba. Jamba is trading at a lower price-to-earnings ratio than Arcos Dorados Holdings, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

99.1% of Jamba shares are held by institutional investors. Comparatively, 36.7% of Arcos Dorados Holdings shares are held by institutional investors. 15.9% of Jamba shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Arcos Dorados Holdings beats Jamba on 10 of the 13 factors compared between the two stocks.

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).

Arcos Dorados Holdings Company Profile

Arcos Dorados Holdings Inc. is a McDonald’s franchisee. The Company operates or franchises over 2,140 McDonald’s-branded restaurants. It divides its operations into four geographical divisions: Brazil; the Caribbean division, consisting of Aruba, Colombia, Curacao, French Guiana, Guadeloupe, Martinique, Puerto Rico, Trinidad and Tobago, the United States Virgin Islands of Saint Croix and Saint Thomas, and Venezuela; the North Latin America division (NOLAD), consisting of Costa Rica, Mexico and Panama, and the South Latin America division (SLAD), consisting of Argentina, Chile, Ecuador, Peru and Uruguay. Its menus feature over three tiers of products: entry-level options, such as its Big Pleasures, Small Prices offerings and Almuerzos Colombianos (Colombian Lunches) in Colombia; core menu options, such as the Big Mac, Happy Meal and Quarter Pounder, and premium options, such as Big Tasty or Angus premium hamburgers and chicken sandwiches and low-calorie or low-sodium products.

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