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.
Arcos Dorados (NYSE:ARCO) and Main Street Capital (NYSE:MAIN) are both mid-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, media sentiment, risk, earnings, analyst recommendations, dividends, community ranking, institutional ownership and profitability.
Arcos Dorados presently has a consensus price target of $13.83, indicating a potential upside of 39.17%. Main Street Capital has a consensus price target of $47.67, indicating a potential downside of 2.20%. Given Arcos Dorados' stronger consensus rating and higher probable upside, research analysts clearly believe Arcos Dorados is more favorable than Main Street Capital.
55.9% of Arcos Dorados shares are owned by institutional investors. Comparatively, 20.3% of Main Street Capital shares are owned by institutional investors. 4.0% of Main Street Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Arcos Dorados has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Main Street Capital has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.
Main Street Capital has lower revenue, but higher earnings 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 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.
Main Street Capital has a net margin of 89.11% compared to Arcos Dorados' net margin of 3.90%. Arcos Dorados' return on equity of 38.57% beat Main Street Capital's return on equity.
Arcos Dorados pays an annual dividend of $0.24 per share and has a dividend yield of 2.4%. Main Street Capital pays an annual dividend of $2.88 per share and has a dividend yield of 5.9%. Arcos Dorados pays out 29.6% of its earnings in the form of a dividend. Main Street Capital pays out 52.6% 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.
In the previous week, Main Street Capital had 5 more articles in the media than Arcos Dorados. MarketBeat recorded 9 mentions for Main Street Capital and 4 mentions for Arcos Dorados. Arcos Dorados' average media sentiment score of 0.86 beat Main Street Capital's score of 0.58 indicating that Arcos Dorados is being referred to more favorably in the media.
Summary
Arcos Dorados and Main Street Capital tied by winning 10 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.
Skip ChartThis 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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