Arc Group (OTCMKTS:RLLY) vs. BJ’s Restaurants (NASDAQ:BJRI) Critical Analysis

BJ’s Restaurants (NASDAQ:BJRI) and Arc Group (OTCMKTS:RLLY) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Earnings and Valuation

This table compares BJ’s Restaurants and Arc Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BJ’s Restaurants	$1.36 billion	0.61	$16.69 million	$1.34	29.40
Arc Group	N/A	N/A	N/A	N/A	N/A

BJ’s Restaurants has higher revenue and earnings than Arc Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BJ’s Restaurants	2.23%	12.92%	4.67%
Arc Group	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for BJ’s Restaurants and Arc Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BJ’s Restaurants	2	6	3	0	2.09
Arc Group	0	0	0	0	0.00

BJ’s Restaurants currently has a consensus target price of $38.75, indicating a potential downside of 1.65%. Given Arc Group’s higher probable upside, analysts clearly believe Arc Group is more favorable than BJ’s Restaurants.

Institutional & Insider Ownership

100.0% of BJ’s Restaurants shares are held by institutional investors. 4.3% of BJ’s Restaurants shares are held by insiders. Comparatively, 12.4% of Arc Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

BJ’s Restaurants beats Arc Group on 7 of the 9 factors compared between the two stocks.

About BJ’s Restaurants

BJ’s Restaurants, Inc. owns and operates casual dining restaurants in the United States. Its restaurants offer pizzas, craft and other beers, appetizers, entrées, pastas, sandwiches, specialty salads, and desserts under brand name Pizookie. The company was formerly known as Chicago Pizza & Brewery, Inc. and changed its name to BJ’s Restaurants, Inc. in August 2004. BJ’s Restaurants, Inc. was founded in 1978 and is based in Huntington Beach, California.

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.