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JACK vs LOVE

JACK
Jack in the Box Inc.
BEARISH
Price
$11.45
Market Cap
$218.7M
Sector
Consumer Cyclical
AI Confidence
95%
LOVE
The Lovesac Company
NEUTRAL
Price
$15.90
Market Cap
$232.4M
Sector
Consumer Cyclical
AI Confidence
75%

Valuation

P/E Ratio
JACK
--
LOVE
56.79
Forward P/E
JACK
2.97
LOVE
5.87
P/B Ratio
JACK
-0.23
LOVE
1.06
P/S Ratio
JACK
0.15
LOVE
0.33
EV/EBITDA
JACK
11.47
LOVE
15.71

Profitability

Gross Margin
JACK
27.53%
LOVE
56.41%
Operating Margin
JACK
14.41%
LOVE
17.5%
Profit Margin
JACK
-8.09%
LOVE
0.58%
ROE
JACK
--
LOVE
1.87%
ROA
JACK
4.58%
LOVE
0.63%

Growth

Revenue Growth
JACK
-5.8%
LOVE
2.7%
Earnings Growth
JACK
--
LOVE
2.7%

Financial Health

Debt/Equity
JACK
--
LOVE
0.88
Current Ratio
JACK
0.66
LOVE
1.61
Quick Ratio
JACK
0.46
LOVE
0.77

Dividends

Dividend Yield
JACK
15.71%
LOVE
--
Payout Ratio
JACK
30.99%
LOVE
0.0%

AI Verdict

JACK BEARISH

JACK exhibits severe financial distress, highlighted by a weak Piotroski F-Score of 2/9 and a negative Price-to-Book ratio (-0.23), indicating negative shareholder equity. While the forward P/E of 2.97 and a 15.71% dividend yield appear attractive, they are classic 'value trap' indicators given the -5.80% revenue growth and a 5-year price collapse of 88.8%. The combination of negative net profit margins, poor liquidity (Current Ratio 0.66), and consistent earnings misses (0/4 beats) suggests a deteriorating business model.

Strengths
Positive operating margin (14.41%)
Extremely low Price/Sales ratio (0.15)
High current dividend yield (15.71%)
Risks
Negative book value indicating insolvency risk
Severe liquidity constraints (Quick Ratio 0.46)
Consistent earnings misses (Average surprise -19.45% over last 4 quarters)
LOVE NEUTRAL

The Lovesac Company presents a stark contrast between deterministic value metrics and forward-looking growth indicators. While the Piotroski F-Score of 4/9 indicates stable but mediocre financial health and the Graham Number ($9.71) suggests the stock is currently overvalued, the Forward P/E (5.87) and PEG Ratio (0.33) point to significant undervalued growth potential. The company maintains strong gross and operating margins, but razor-thin net profit margins and stagnant YoY revenue growth (2.7%) temper the bullish short-term price momentum.

Strengths
Strong Gross Margin (56.41%) and Operating Margin (17.50%)
Extremely attractive Forward P/E (5.87) and PEG Ratio (0.33)
Low Price-to-Sales ratio (0.33) relative to revenue generation
Risks
Very low net profit margin (0.58%) indicating high overhead or non-operating costs
Stagnant YoY revenue and earnings growth (2.7%)
Significant discrepancy between current price ($15.90) and Intrinsic Value ($3.09)

Compare Another Pair

JACK vs LOVE: Head-to-Head Comparison

This page compares Jack in the Box Inc. (JACK) and The Lovesac Company (LOVE) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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