ARCO vs. EAT, MAIN, SG, CAKE, HDL, PZZA, FWRG, KRUS, CBRL, and PLAY
Should you be buying Arcos Dorados stock or one of its competitors? The main competitors of Arcos Dorados include Brinker International (EAT), Main Street Capital (MAIN), Sweetgreen (SG), Cheesecake Factory (CAKE), Super Hi International (HDL), Papa Johns International (PZZA), First Watch Restaurant Group (FWRG), Kura Sushi USA (KRUS), Cracker Barrel Old Country Store (CBRL), and Dave & Buster's Entertainment (PLAY). These companies are all part of the "eating places" industry.
Arcos Dorados vs.
Brinker International (NYSE:EAT) and Arcos Dorados (NYSE:ARCO) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, media sentiment, earnings, analyst recommendations, community ranking, valuation and profitability.
Brinker International has a net margin of 4.11% compared to Arcos Dorados' net margin of 3.25%. Arcos Dorados' return on equity of 29.74% beat Brinker International's return on equity.
55.9% of Arcos Dorados shares are owned by institutional investors. 1.7% of Brinker International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Arcos Dorados has lower revenue, but higher earnings than Brinker International. Arcos Dorados is trading at a lower price-to-earnings ratio than Brinker International, indicating that it is currently the more affordable of the two stocks.
Brinker International has a beta of 2.51, suggesting that its share price is 151% more volatile than the S&P 500. Comparatively, Arcos Dorados has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.
Brinker International received 431 more outperform votes than Arcos Dorados when rated by MarketBeat users. Likewise, 58.15% of users gave Brinker International an outperform vote while only 55.33% of users gave Arcos Dorados an outperform vote.
Brinker International currently has a consensus price target of $94.63, suggesting a potential downside of 29.45%. Arcos Dorados has a consensus price target of $12.00, suggesting a potential upside of 59.57%. Given Arcos Dorados' stronger consensus rating and higher probable upside, analysts clearly believe Arcos Dorados is more favorable than Brinker International.
Brinker International pays an annual dividend of $1.52 per share and has a dividend yield of 1.1%. Arcos Dorados pays an annual dividend of $0.24 per share and has a dividend yield of 3.2%. Brinker International pays out 37.1% of its earnings in the form of a dividend. Arcos Dorados pays out 34.3% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
In the previous week, Brinker International and Brinker International both had 7 articles in the media. Brinker International's average media sentiment score of 1.05 beat Arcos Dorados' score of 0.70 indicating that Brinker International is being referred to more favorably in the media.
Summary
Brinker International beats Arcos Dorados on 12 of the 19 factors compared between the two stocks.
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New MarketBeat Followers Over Time
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Media Sentiment Over Time
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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This page (NYSE:ARCO) was last updated on 12/20/2024 by MarketBeat.com Staff
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