Head-To-Head Analysis: Arcos Dorados (NYSE:ARCO) versus Arc Group (OTCMKTS:RLLY)

Arcos Dorados (NYSE:ARCO) and Arc Group (OTCMKTS:RLLY) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.

Earnings and Valuation

This table compares Arcos Dorados and Arc Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arcos Dorados	$4.47 billion	0.35	$148.76 million	$0.63	11.71
Arc Group	N/A	N/A	N/A	N/A	N/A

Arcos Dorados has higher revenue and earnings than Arc Group.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Arcos Dorados and Arc Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcos Dorados	2	1	0	0	1.33
Arc Group	0	0	0	0	0.00

Arcos Dorados currently has a consensus target price of $8.80, indicating a potential upside of 19.32%. Given Arcos Dorados’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Arcos Dorados is more favorable than Arc Group.

Profitability

This table compares Arcos Dorados and Arc Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arcos Dorados	2.89%	24.54%	4.10%
Arc Group	N/A	N/A	N/A

Insider and Institutional Ownership

55.9% of Arcos Dorados shares are held by institutional investors. 12.4% of Arc Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Arcos Dorados beats Arc Group on 7 of the 8 factors compared between the two stocks.

About Arcos Dorados

Arcos Dorados Holdings Inc. operates as a franchisee of McDonald’s restaurants. It has the exclusive right to own, operate, and grant franchises of McDonald’s restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. The company was founded in 2007 and is based in Montevideo, Uruguay.

About Arc Group

ARC Group, Inc. engages in the operation of Dick’s Wings brand of restaurants. It offers its traditional and boneless chicken wings, hog wings, and duck wings spun in its signature sauces and seasonings. The firm oprates through the following segments; Company-Owned Restaurants and Franchise Operations. The Company-Owned Restaurants are casual dining restaurants. The Franchise Operations segment offers franchises for the Dick’s Wings brand. It also offers craft beers under the name Dick’s Craft Beers. The company was founded in April 2000 and is headquartered in Jacksonville, FL.