ARCO vs. PLAY, BLMN, CAKE, EAT, PZZA, CBRL, KRUS, FWRG, SG, and JACK
Should you be buying Arcos Dorados stock or one of its competitors? The main competitors of Arcos Dorados include Dave & Buster's Entertainment (PLAY), Bloomin' Brands (BLMN), Cheesecake Factory (CAKE), Brinker International (EAT), Papa John's International (PZZA), Cracker Barrel Old Country Store (CBRL), Kura Sushi USA (KRUS), First Watch Restaurant Group (FWRG), Sweetgreen (SG), and Jack in the Box (JACK). These companies are all part of the "eating places" industry.
Dave & Buster's Entertainment (NASDAQ:PLAY) and Arcos Dorados (NYSE:ARCO) are both mid-cap retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, media sentiment, analyst recommendations, valuation and community ranking.
91.4% of Dave & Buster's Entertainment shares are owned by institutional investors. Comparatively, 55.9% of Arcos Dorados shares are owned by institutional investors. 1.6% of Dave & Buster's Entertainment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Arcos Dorados has higher revenue and earnings than Dave & Buster's Entertainment. Arcos Dorados is trading at a lower price-to-earnings ratio than Dave & Buster's Entertainment, indicating that it is currently the more affordable of the two stocks.
Dave & Buster's Entertainment pays an annual dividend of $0.64 per share and has a dividend yield of 1.2%. Arcos Dorados pays an annual dividend of $0.24 per share and has a dividend yield of 2.3%. Dave & Buster's Entertainment pays out 22.8% of its earnings in the form of a dividend. Arcos Dorados pays out 29.6% 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 raised its dividend for 1 consecutive years. Arcos Dorados is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Dave & Buster's Entertainment presently has a consensus target price of $69.21, indicating a potential upside of 31.09%. Arcos Dorados has a consensus target price of $13.83, indicating a potential upside of 32.38%. Given Dave & Buster's Entertainment's stronger consensus rating and higher possible upside, analysts plainly believe Arcos Dorados is more favorable than Dave & Buster's Entertainment.
Dave & Buster's Entertainment received 245 more outperform votes than Arcos Dorados when rated by MarketBeat users. Likewise, 67.58% of users gave Dave & Buster's Entertainment an outperform vote while only 55.35% of users gave Arcos Dorados an outperform vote.
Dave & Buster's Entertainment has a net margin of 5.76% compared to Dave & Buster's Entertainment's net margin of 3.90%. Arcos Dorados' return on equity of 53.96% beat Dave & Buster's Entertainment's return on equity.
Dave & Buster's Entertainment has a beta of 2.08, meaning that its share price is 108% more volatile than the S&P 500. Comparatively, Arcos Dorados has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.
In the previous week, Arcos Dorados had 17 more articles in the media than Dave & Buster's Entertainment. MarketBeat recorded 19 mentions for Arcos Dorados and 2 mentions for Dave & Buster's Entertainment. Arcos Dorados' average media sentiment score of 1.13 beat Dave & Buster's Entertainment's score of 0.37 indicating that Dave & Buster's Entertainment is being referred to more favorably in the media.
Summary
Dave & Buster's Entertainment beats Arcos Dorados on 12 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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