Arcos Dorados (ARCO) Competitors

Arcos Dorados (NYSE:ARCO) and Brinker International (NYSE:EAT) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation, dividends, media sentiment and community ranking.

Is ARCO or EAT more profitable?

Brinker International has a net margin of 4.11% compared to Arcos Dorados' net margin of 3.25%. Arcos Dorados' return on equity of 30.07% beat Brinker International's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Arcos Dorados	3.25%	30.07%	4.99%
Brinker International	4.11%	-839.19%	8.62%

Does the MarketBeat Community prefer ARCO or EAT?

Brinker International received 430 more outperform votes than Arcos Dorados when rated by MarketBeat users. Likewise, 58.22% of users gave Brinker International an outperform vote while only 55.33% of users gave Arcos Dorados an outperform vote.

Company	Underperform	Outperform
Arcos Dorados	Outperform Votes 275 55.33%	Underperform Votes 222 44.67%
Brinker International	Outperform Votes 705 58.22%	Underperform Votes 506 41.78%

Do institutionals and insiders hold more shares of ARCO or EAT?

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 hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Which has more volatility and risk, ARCO or EAT?

Arcos Dorados has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Brinker International has a beta of 2.46, indicating that its stock price is 146% more volatile than the S&P 500.

Do analysts prefer ARCO or EAT?

Arcos Dorados currently has a consensus price target of $13.50, suggesting a potential upside of 53.32%. Brinker International has a consensus price target of $86.45, suggesting a potential downside of 25.83%. Given Arcos Dorados' stronger consensus rating and higher probable upside, research analysts clearly believe Arcos Dorados is more favorable than Brinker International.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcos Dorados	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	3.00
Brinker International	2 Sell rating(s)	13 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.06

Which has better valuation and earnings, ARCO or EAT?

Arcos Dorados has higher earnings, but lower revenue 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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arcos Dorados	$4.33B	0.43	$181.27M	$0.70	12.58
Brinker International	$4.42B	1.17	$155.30M	$4.10	28.43

Does the media favor ARCO or EAT?

In the previous week, Arcos Dorados had 8 more articles in the media than Brinker International. MarketBeat recorded 18 mentions for Arcos Dorados and 10 mentions for Brinker International. Brinker International's average media sentiment score of 1.04 beat Arcos Dorados' score of 0.77 indicating that Brinker International is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Arcos Dorados	8 Very Positive mention(s)	0 Positive mention(s)	9 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Brinker International	6 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Summary

Brinker International beats Arcos Dorados on 12 of the 18 factors compared between the two stocks.