Jamba (JMBA) versus Shake Shack (SHAK) Head-To-Head Contrast

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

Analyst Ratings

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This is a breakdown of current recommendations for Jamba and Shake Shack, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jamba 0 0 0 0 N/A
Shake Shack 1 4 3 0 2.25

Shake Shack has a consensus target price of $40.63, indicating a potential downside of 5.85%. Given Shake Shack’s higher probable upside, analysts plainly believe Shake Shack is more favorable than Jamba.

Profitability

This table compares Jamba and Shake Shack’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jamba -23.19% N/A -43.01%
Shake Shack -0.63% 9.47% 3.82%

Volatility and Risk

Jamba has a beta of -0.1, indicating that its stock price is 110% less volatile than the S&P 500. Comparatively, Shake Shack has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.

Earnings & Valuation

This table compares Jamba and Shake Shack’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jamba $79.62 million 1.73 -$22.43 million N/A N/A
Shake Shack $358.81 million 4.42 -$320,000.00 $0.57 75.70

Shake Shack has higher revenue and earnings than Jamba.

Insider & Institutional Ownership

90.6% of Jamba shares are owned by institutional investors. Comparatively, 82.4% of Shake Shack shares are owned by institutional investors. 15.9% of Jamba shares are owned by insiders. Comparatively, 34.9% of Shake Shack shares are owned 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.

Summary

Shake Shack beats Jamba on 10 of the 11 factors compared between the two stocks.

About Jamba

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).

About Shake Shack

Shake Shack Inc. owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. Its Shacks offers hamburgers, hot dogs, chicken, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. As of December 27, 2017, it had 159 Shacks, including 90 domestic company-operated Shacks, 10 domestic licensed Shacks, and 59 international licensed Shacks. Shake Shack Inc. was founded in 2004 and is headquartered in New York, New York.

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