Arcos Dorados (ARCO) Competitors

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

Which has higher valuation & earnings, ARCO or RRR?

Arcos Dorados has higher revenue and earnings than Red Rock Resorts. Arcos Dorados is trading at a lower price-to-earnings ratio than Red Rock Resorts, 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	0.41	$181.27M	$0.70	11.98
Red Rock Resorts	$1.94B	2.80	$154.05M	$2.51	20.48

Which has more volatility & risk, ARCO or RRR?

Arcos Dorados has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Red Rock Resorts has a beta of 2.02, suggesting that its stock price is 102% more volatile than the S&P 500.

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

55.9% of Arcos Dorados shares are owned by institutional investors. Comparatively, 47.8% of Red Rock Resorts shares are owned by institutional investors. 53.3% of Red Rock Resorts shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Does the media prefer ARCO or RRR?

In the previous week, Red Rock Resorts had 3 more articles in the media than Arcos Dorados. MarketBeat recorded 7 mentions for Red Rock Resorts and 4 mentions for Arcos Dorados. Arcos Dorados' average media sentiment score of 1.77 beat Red Rock Resorts' score of 0.82 indicating that Arcos Dorados is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Arcos Dorados	4 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Red Rock Resorts	4 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is ARCO or RRR a better dividend stock?

Arcos Dorados pays an annual dividend of $0.24 per share and has a dividend yield of 2.9%. Red Rock Resorts pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. Arcos Dorados pays out 34.3% of its earnings in the form of a dividend. Red Rock Resorts pays out 39.8% 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.

Is ARCO or RRR more profitable?

Red Rock Resorts has a net margin of 7.94% compared to Arcos Dorados' net margin of 3.25%. Red Rock Resorts' return on equity of 71.00% beat Arcos Dorados' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Arcos Dorados	3.25%	29.74%	4.99%
Red Rock Resorts	7.94%	71.00%	3.85%

Do analysts recommend ARCO or RRR?

Arcos Dorados presently has a consensus target price of $12.00, indicating a potential upside of 43.11%. Red Rock Resorts has a consensus target price of $57.33, indicating a potential upside of 11.54%. Given Arcos Dorados' stronger consensus rating and higher probable upside, analysts clearly believe Arcos Dorados is more favorable than Red Rock Resorts.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcos Dorados	0 Sell rating(s)	0 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	3.00
Red Rock Resorts	0 Sell rating(s)	7 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.42

Does the MarketBeat Community favor ARCO or RRR?

Red Rock Resorts received 130 more outperform votes than Arcos Dorados when rated by MarketBeat users. Likewise, 64.39% of users gave Red Rock Resorts 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%
Red Rock Resorts	Outperform Votes 405 64.39%	Underperform Votes 224 35.61%

Summary

Red Rock Resorts beats Arcos Dorados on 11 of the 20 factors compared between the two stocks.