ARCO vs. MAIN, SG, EAT, PLAY, CAKE, BLMN, PZZA, FWRG, KRUS, and JACK
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 Jack in the Box (JACK). These companies are all part of the "eating places" industry.
Main Street Capital (NYSE:MAIN) and Arcos Dorados (NYSE:ARCO) are both mid-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their community ranking, analyst recommendations, risk, earnings, media sentiment, profitability, dividends, valuation and institutional ownership.
Main Street Capital pays an annual dividend of $2.88 per share and has a dividend yield of 6.0%. Arcos Dorados pays an annual dividend of $0.24 per share and has a dividend yield of 2.5%. Main Street Capital pays out 52.6% 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. Main Street Capital has raised its dividend for 4 consecutive years and Arcos Dorados has raised its dividend for 1 consecutive years. Main Street Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
20.3% of Main Street Capital shares are held by institutional investors. Comparatively, 55.9% of Arcos Dorados shares are held by institutional investors. 4.0% of Main Street Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Main Street Capital has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Arcos Dorados has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.
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.
In the previous week, Main Street Capital had 8 more articles in the media than Arcos Dorados. MarketBeat recorded 12 mentions for Main Street Capital and 4 mentions for Arcos Dorados. Main Street Capital's average media sentiment score of 0.59 beat Arcos Dorados' score of 0.49 indicating that Arcos Dorados is being referred to more favorably in the news media.
Main Street Capital has a net margin of 89.11% compared to Main Street Capital's net margin of 3.90%. Main Street Capital's return on equity of 38.57% beat Arcos Dorados' return on equity.
Main Street Capital has higher earnings, but lower revenue 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.
Main Street Capital presently has a consensus price target of $47.67, suggesting a potential downside of 1.15%. Arcos Dorados has a consensus price target of $13.83, suggesting a potential upside of 41.30%. Given Main Street Capital's stronger consensus rating and higher possible upside, analysts clearly believe Arcos Dorados is more favorable than Main Street Capital.
Summary
Main Street Capital beats Arcos Dorados on 11 of the 21 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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