Papa John's International (PZZA) Competitors

Papa John's International (NASDAQ:PZZA) and Arcos Dorados (NYSE:ARCO) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, media sentiment, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Which has more risk and volatility, PZZA or ARCO?

Papa John's International has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Arcos Dorados has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.

Do institutionals & insiders have more ownership in PZZA or ARCO?

55.9% of Arcos Dorados shares are owned by institutional investors. 1.3% of Papa John's International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Does the media refer more to PZZA or ARCO?

In the previous week, Papa John's International had 16 more articles in the media than Arcos Dorados. MarketBeat recorded 21 mentions for Papa John's International and 5 mentions for Arcos Dorados. Papa John's International's average media sentiment score of 0.60 beat Arcos Dorados' score of 0.14 indicating that Papa John's International is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Papa John's International	6 Very Positive mention(s)	5 Positive mention(s)	8 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Arcos Dorados	3 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Do analysts rate PZZA or ARCO?

Papa John's International currently has a consensus price target of $49.78, indicating a potential downside of 5.68%. Arcos Dorados has a consensus price target of $8.80, indicating a potential upside of 25.45%. Given Arcos Dorados' higher possible upside, analysts clearly believe Arcos Dorados is more favorable than Papa John's International.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Papa John's International	0 Sell rating(s)	8 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.33
Arcos Dorados	1 Sell rating(s)	1 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.50

Is PZZA or ARCO more profitable?

Papa John's International has a net margin of 3.58% compared to Arcos Dorados' net margin of 2.89%. Arcos Dorados' return on equity of 24.54% beat Papa John's International's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Papa John's International	3.58%	-14.42%	6.78%
Arcos Dorados	2.89%	24.54%	4.10%

Is PZZA or ARCO a better dividend stock?

Papa John's International pays an annual dividend of $1.84 per share and has a dividend yield of 3.5%. Arcos Dorados pays an annual dividend of $0.24 per share and has a dividend yield of 3.4%. Papa John's International pays out 81.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Arcos Dorados pays out 38.1% of its earnings in the form of a dividend. Papa John's International has increased its dividend for 4 consecutive years and Arcos Dorados has increased its dividend for 1 consecutive years. Papa John's International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Which has higher earnings & valuation, PZZA or ARCO?

Arcos Dorados has higher revenue and earnings than Papa John's International. Arcos Dorados is trading at a lower price-to-earnings ratio than Papa John's 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
Papa John's International	$2.09B	0.83	$83.49M	$2.26	23.35
Arcos Dorados	$4.47B	0.33	$148.76M	$0.63	11.13

Summary

Papa John's International beats Arcos Dorados on 13 of the 19 factors compared between the two stocks.