Contrasting Arc Group (OTCMKTS:RLLY) & First Watch Restaurant Group (NASDAQ:FWRG)

First Watch Restaurant Group (NASDAQ:FWRG) 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 earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Insider and Institutional Ownership

96.1% of First Watch Restaurant Group shares are held by institutional investors. 6.0% of First Watch Restaurant Group shares are held by insiders. Comparatively, 12.4% of Arc Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares First Watch Restaurant Group and Arc Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Watch Restaurant Group	0.42%	0.83%	0.31%
Arc Group	N/A	N/A	N/A

Earnings & Valuation

This table compares First Watch Restaurant Group and Arc Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Watch Restaurant Group	$1.02 billion	1.05	$18.92 million	$0.08	219.25
Arc Group	N/A	N/A	N/A	N/A	N/A

First Watch Restaurant Group has higher revenue and earnings than Arc Group.

Analyst Ratings

This is a summary of recent recommendations for First Watch Restaurant Group and Arc Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Watch Restaurant Group	1	1	8	1	2.82
Arc Group	0	0	0	0	0.00

First Watch Restaurant Group currently has a consensus price target of $20.91, indicating a potential upside of 19.21%. Given First Watch Restaurant Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe First Watch Restaurant Group is more favorable than Arc Group.

Summary

First Watch Restaurant Group beats Arc Group on 9 of the 10 factors compared between the two stocks.

About First Watch Restaurant Group

First Watch Restaurant Group, Inc., through its subsidiaries, operates and franchises restaurants under the First Watch trade name in the United States. The company was formerly known as AI Fresh Super Holdco, Inc. and changed its name to First Watch Restaurant Group, Inc. in December 2019. First Watch Restaurant Group, Inc. was founded in 1983 and is based in Bradenton, Florida.

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.