ARCO vs. MAIN, SG, EAT, PLAY, CAKE, BLMN, PZZA, FWRG, KRUS, and CBRL
Should you be buying Arcos Dorados stock or one of its competitors? The main competitors of Arcos Dorados include Main Street Capital (MAIN), Sweetgreen (SG), Brinker International (EAT), Dave & Buster's Entertainment (PLAY), Cheesecake Factory (CAKE), Bloomin' Brands (BLMN), Papa John's International (PZZA), First Watch Restaurant Group (FWRG), Kura Sushi USA (KRUS), and Cracker Barrel Old Country Store (CBRL). These companies are all part of the "eating places" industry.
Arcos Dorados (NYSE:ARCO) and Main Street Capital (NYSE:MAIN) are both mid-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their media sentiment, risk, community ranking, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.
In the previous week, Main Street Capital had 13 more articles in the media than Arcos Dorados. MarketBeat recorded 15 mentions for Main Street Capital and 2 mentions for Arcos Dorados. Main Street Capital's average media sentiment score of 0.40 beat Arcos Dorados' score of 0.39 indicating that Main Street Capital is being referred to more favorably in the news media.
55.9% of Arcos Dorados shares are held by institutional investors. Comparatively, 20.3% of Main Street Capital shares are held by institutional investors. 4.0% of Main Street Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Main Street Capital has a net margin of 89.11% compared to Arcos Dorados' net margin of 3.90%. Arcos Dorados' return on equity of 38.57% beat Main Street Capital's return on equity.
Arcos Dorados currently has a consensus target price of $13.83, suggesting a potential upside of 43.20%. Main Street Capital has a consensus target price of $47.67, suggesting a potential downside of 2.72%. Given Arcos Dorados' stronger consensus rating and higher probable upside, equities analysts clearly believe Arcos Dorados is more favorable than Main Street Capital.
Main Street Capital received 126 more outperform votes than Arcos Dorados when rated by MarketBeat users. Likewise, 56.90% of users gave Main Street Capital an outperform vote while only 55.24% of users gave Arcos Dorados an outperform vote.
Arcos Dorados pays an annual dividend of $0.24 per share and has a dividend yield of 2.5%. Main Street Capital pays an annual dividend of $2.88 per share and has a dividend yield of 5.9%. Arcos Dorados pays out 29.6% of its earnings in the form of a dividend. Main Street Capital pays out 52.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Arcos Dorados has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, Main Street Capital has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.
Main Street Capital has lower revenue, but higher earnings than Arcos Dorados. Main Street Capital is trading at a lower price-to-earnings ratio than Arcos Dorados, indicating that it is currently the more affordable of the two stocks.
Summary
Main Street Capital beats Arcos Dorados on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ARCO and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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