Jamba (NASDAQ: JMBA) and Red Robin Gourmet Burgers (NASDAQ:RRGB) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Jamba and Red Robin Gourmet Burgers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jamba 0 1 0 0 2.00
Red Robin Gourmet Burgers 0 4 6 0 2.60

Red Robin Gourmet Burgers has a consensus target price of $72.67, suggesting a potential upside of 15.34%. Given Red Robin Gourmet Burgers’ stronger consensus rating and higher possible upside, analysts plainly believe Red Robin Gourmet Burgers is more favorable than Jamba.

Valuation & Earnings

This table compares Jamba and Red Robin Gourmet Burgers’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Jamba $81.90 million 1.54 -$3.64 million ($1.03) -8.01
Red Robin Gourmet Burgers $1.32 billion 0.62 $131.93 million $0.64 98.44

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

Risk & Volatility

Jamba has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500. Comparatively, Red Robin Gourmet Burgers has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Profitability

This table compares Jamba and Red Robin Gourmet Burgers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jamba N/A N/A N/A
Red Robin Gourmet Burgers 0.64% 8.00% 3.18%

Insider and Institutional Ownership

99.1% of Jamba shares are owned by institutional investors. 15.9% of Jamba shares are owned by insiders. Comparatively, 2.7% of Red Robin Gourmet Burgers shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Red Robin Gourmet Burgers 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).

Red Robin Gourmet Burgers Company Profile

Red Robin Gourmet Burgers, Inc., together with its subsidiaries, primarily develops, operates, and franchises full-service restaurants in North America and focuses on serving selection of gourmet burgers. The Company’s menu features a line of gourmet burgers, which it makes from ground beef, as well as its line of Red’s Tavern Double Burgers and its Red Robin’s line of half-pound Angus beef burgers with various toppings. The Company also offers burgers made from chicken breasts, fish fillets, turkey patties, as well as vegetarian and vegan options. The Company offered a selection of buns, including ciabatta, gluten free, sesame, onion, whole grain, jalapeno and lettuce wraps a range of toppings, including fresh guacamole, house made barbeque sauces, aiolis, grilled pineapple, crispy onion straws, sauteed mushrooms, fried jalapenos, bruschetta salsa, coleslaw, eight different cheese choices and a fried egg, as of December 25, 2016.

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