Head to Head Survey: Pizza Pizza Royalty (OTCMKTS:PZRIF) versus Jack In The Box (NASDAQ:JACK)

Pizza Pizza Royalty (OTCMKTS:PZRIF) and Jack In The Box (NASDAQ:JACK) are both consumer cyclical companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations for Pizza Pizza Royalty and Jack In The Box, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pizza Pizza Royalty	0	1	0	0	2.00
Jack In The Box	3	12	5	0	2.10

Jack In The Box has a consensus price target of $27.89, indicating a potential upside of 63.61%. Given Jack In The Box’s stronger consensus rating and higher possible upside, analysts plainly believe Jack In The Box is more favorable than Pizza Pizza Royalty.

Profitability

This table compares Pizza Pizza Royalty and Jack In The Box’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pizza Pizza Royalty	N/A	N/A	N/A
Jack In The Box	-4.34%	-11.31%	3.82%

Institutional & Insider Ownership

35.5% of Pizza Pizza Royalty shares are owned by institutional investors. Comparatively, 99.8% of Jack In The Box shares are owned by institutional investors. 1.4% of Jack In The Box shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Pizza Pizza Royalty and Jack In The Box”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pizza Pizza Royalty	N/A	N/A	N/A	$0.81	12.48
Jack In The Box	$1.49 billion	0.22	-$36.69 million	($3.45)	-4.94

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

Dividends

Pizza Pizza Royalty pays an annual dividend of $0.79 per share and has a dividend yield of 7.8%. Jack In The Box pays an annual dividend of $1.76 per share and has a dividend yield of 10.3%. Pizza Pizza Royalty pays out 97.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Jack In The Box pays out -51.0% of its earnings in the form of a dividend. Jack In The Box is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Jack In The Box beats Pizza Pizza Royalty on 9 of the 13 factors compared between the two stocks.

About Pizza Pizza Royalty

Pizza Pizza Royalty Corp., through its subsidiary, Pizza Pizza Royalty Limited Partnership, owns and franchises quick service restaurants under the Pizza Pizza and Pizza 73 brands in Canada. The company was founded in 1967 and is headquartered in Toronto, Canada.

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.