Head to Head Survey: Ollie’s Bargain Outlet (NASDAQ:OLLI) versus ARKO (NASDAQ:ARKO)

ARKO (NASDAQ:ARKO) and Ollie’s Bargain Outlet (NASDAQ:OLLI) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Profitability

This table compares ARKO and Ollie’s Bargain Outlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ARKO	0.30%	8.58%	0.63%
Ollie’s Bargain Outlet	9.08%	13.18%	8.43%

Valuation & Earnings

This table compares ARKO and Ollie’s Bargain Outlet”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARKO	$7.64 billion	0.07	$22.74 million	$0.14	36.00
Ollie’s Bargain Outlet	$2.65 billion	2.47	$240.60 million	$3.90	27.34

Ollie’s Bargain Outlet has lower revenue, but higher earnings than ARKO. Ollie’s Bargain Outlet is trading at a lower price-to-earnings ratio than ARKO, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

ARKO has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Ollie’s Bargain Outlet has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for ARKO and Ollie’s Bargain Outlet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARKO	1	2	1	1	2.40
Ollie’s Bargain Outlet	0	3	13	0	2.81

ARKO presently has a consensus price target of $7.00, suggesting a potential upside of 38.89%. Ollie’s Bargain Outlet has a consensus price target of $141.50, suggesting a potential upside of 32.69%. Given ARKO’s higher possible upside, analysts clearly believe ARKO is more favorable than Ollie’s Bargain Outlet.

Insider and Institutional Ownership

78.3% of ARKO shares are owned by institutional investors. 22.5% of ARKO shares are owned by company insiders. Comparatively, 0.9% of Ollie’s Bargain Outlet shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Ollie’s Bargain Outlet beats ARKO on 8 of the 15 factors compared between the two stocks.

About ARKO

Arko Corp. operates convenience stores in the United States. It operates through Retail, Wholesale, Fleet Fueling, and GPMP segments. The Retail segment engages in the sale of fuel and merchandise to retail consumers. Its Wholesale segment supplies fuel to third-party dealers and consignment agents. The Fleet Fueling segment supplies fuel to proprietary and third-party cardlock, and issuance of proprietary fuel cards. Its GPMP segment supplies fuel to retail and wholesale segments. The company is based in Richmond, Virginia.

About Ollie’s Bargain Outlet

Ollie’s Bargain Outlet Holdings, Inc. is a holding company, which engages in the retail of closeouts, excess inventory, and salvage merchandise. It offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company’s products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys. Ollie’s Bargain Outlet Holdings was founded by Mark Butler, Mort Bernstein, Oliver Rosenberg and Harry Coverman on July 29, 1982, and is headquartered in Harrisburg, PA.