Livexlive Media (LIVX) vs. Jack in the Box (NASDAQ:JACK) Critical Review

Jack in the Box (NASDAQ:JACK) and Livexlive Media (NASDAQ:LIVX) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Jack in the Box and Livexlive Media, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jack in the Box 0 6 5 0 2.45
Livexlive Media 0 0 4 0 3.00

Jack in the Box currently has a consensus price target of $91.40, suggesting a potential upside of 17.03%. Livexlive Media has a consensus price target of $8.33, suggesting a potential upside of 61.81%. Given Livexlive Media’s stronger consensus rating and higher possible upside, analysts plainly believe Livexlive Media is more favorable than Jack in the Box.

Dividends

Jack in the Box pays an annual dividend of $1.60 per share and has a dividend yield of 2.0%. Livexlive Media does not pay a dividend. Jack in the Box pays out 42.2% of its earnings in the form of a dividend.

Insider and Institutional Ownership

95.5% of Jack in the Box shares are held by institutional investors. Comparatively, 21.3% of Livexlive Media shares are held by institutional investors. 2.3% of Jack in the Box shares are held by insiders. Comparatively, 37.0% of Livexlive Media shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Jack in the Box has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Livexlive Media has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.

Earnings and Valuation

This table compares Jack in the Box and Livexlive Media’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jack in the Box $869.69 million 2.32 $121.37 million $3.79 20.61
Livexlive Media $7.20 million 37.26 -$23.33 million ($0.48) -10.73

Jack in the Box has higher revenue and earnings than Livexlive Media. Livexlive Media is trading at a lower price-to-earnings ratio than Jack in the Box, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Jack in the Box and Livexlive Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jack in the Box 16.55% -20.44% 12.72%
Livexlive Media -117.50% -134.46% -56.33%

Summary

Jack in the Box beats Livexlive Media on 10 of the 16 factors compared between the two stocks.

About Jack in the Box

Jack in the Box Inc. operates and franchises Jack in the Box quick-service restaurants. As of April 15, 2018, it operated and franchised 2,245 Jack in the Box restaurants primarily in the western and southern United States and Guam. The company was founded in 1951 and is headquartered in San Diego, California.

About Livexlive Media

LiveXLive Media, Inc. engages in the acquisition, distribution, and monetization of live music, Internet radio, and music-related streaming and video content. The company operates LiveXLive, a live music streaming platform, as well as Slacker Radio, a streaming music service; and produces original music-related content. It also produces, edits, curates, and streams live music events through broadband transmission over the Internet and or satellite networks to its users; provides digital Internet radio and music services to users online and through original equipment manufacturers on a white label basis; and offers ancillary products and services, such as regulatory and post-implementation support services. The company was formerly known as Loton, Corp. and changed its name to LiveXLive Media, Inc. in August 2017. LiveXLive Media, Inc. was founded in 2009 and is headquartered in West Hollywood, California.

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