Ark Restaurants (NASDAQ:ARKR) vs. Denny’s (NASDAQ:DENN) Head-To-Head Comparison

Denny’s (NASDAQ:DENNGet Rating) and Ark Restaurants (NASDAQ:ARKRGet Rating) 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 risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Earnings & Valuation

This table compares Denny’s and Ark Restaurants’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Denny’s $398.17 million 2.06 $78.07 million $1.20 11.07
Ark Restaurants $131.87 million 0.47 $12.90 million $4.38 3.97

Denny’s has higher revenue and earnings than Ark Restaurants. Ark Restaurants is trading at a lower price-to-earnings ratio than Denny’s, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Denny’s and Ark Restaurants’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Denny’s 19.61% -37.11% 7.84%
Ark Restaurants 10.20% 33.31% 9.87%

Insider & Institutional Ownership

99.8% of Denny’s shares are held by institutional investors. Comparatively, 14.4% of Ark Restaurants shares are held by institutional investors. 5.3% of Denny’s shares are held by insiders. Comparatively, 40.1% of Ark Restaurants shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Denny’s has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, Ark Restaurants has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Denny’s and Ark Restaurants, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Denny’s 0 2 5 0 2.71
Ark Restaurants 0 0 0 0 N/A

Denny’s presently has a consensus target price of $18.14, indicating a potential upside of 36.62%. Given Denny’s’ higher possible upside, research analysts clearly believe Denny’s is more favorable than Ark Restaurants.

Summary

Denny’s beats Ark Restaurants on 9 of the 13 factors compared between the two stocks.

About Denny’s (Get Rating)

Denny's Corporation, through its subsidiary, Denny's, Inc., owns and operates full-service restaurant chains under the Denny's brand. As of December 29, 2021, it had 1,640 franchised, licensed, and company restaurants worldwide. The company was formerly known as Advantica Restaurant Group, Inc. and changed its name to Denny's Corporation in 2002. Denny's Corporation was founded in 1953 and is based in Spartanburg, South Carolina.

About Ark Restaurants (Get Rating)

Ark Restaurants Corp. owns and operates restaurants and bars, fast food concepts and catering operations in the U.S. It operates in New York City, Florida, Washington, D.C, Las Vegas, NV and the gulf coast of Alabama. The company was founded in January 1983 and is headquartered in New York, NY.

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