Arcos Dorados (NYSE: ARCO) and MITCHELLS &BUTLERS (OTCMKTS:MBPFF) are both small-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.
Valuation and Earnings
This table compares Arcos Dorados and MITCHELLS &BUTLERS’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Arcos Dorados||$3.32 billion||0.58||$129.16 million||$0.61||14.95|
|MITCHELLS &BUTLERS||$2.97 billion||0.48||N/A||N/A||N/A|
This table compares Arcos Dorados and MITCHELLS &BUTLERS’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Arcos Dorados pays an annual dividend of $0.10 per share and has a dividend yield of 1.1%. MITCHELLS &BUTLERS does not pay a dividend. Arcos Dorados pays out 16.4% of its earnings in the form of a dividend.
Insider & Institutional Ownership
40.0% of Arcos Dorados shares are held by institutional investors. 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.
Volatility and Risk
Arcos Dorados has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500. Comparatively, MITCHELLS &BUTLERS has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for Arcos Dorados and MITCHELLS &BUTLERS, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Arcos Dorados currently has a consensus target price of $11.30, suggesting a potential upside of 23.90%. Given Arcos Dorados’ higher possible upside, research analysts plainly believe Arcos Dorados is more favorable than MITCHELLS &BUTLERS.
Arcos Dorados beats MITCHELLS &BUTLERS on 10 of the 11 factors compared between the two stocks.
Arcos Dorados Company Profile
Arcos Dorados Holdings Inc. is a McDonald’s franchisee. The Company operates or franchises over 2,140 McDonald’s-branded restaurants. It divides its operations into four geographical divisions: Brazil; the Caribbean division, consisting of Aruba, Colombia, Curacao, French Guiana, Guadeloupe, Martinique, Puerto Rico, Trinidad and Tobago, the United States Virgin Islands of Saint Croix and Saint Thomas, and Venezuela; the North Latin America division (NOLAD), consisting of Costa Rica, Mexico and Panama, and the South Latin America division (SLAD), consisting of Argentina, Chile, Ecuador, Peru and Uruguay. Its menus feature over three tiers of products: entry-level options, such as its Big Pleasures, Small Prices offerings and Almuerzos Colombianos (Colombian Lunches) in Colombia; core menu options, such as the Big Mac, Happy Meal and Quarter Pounder, and premium options, such as Big Tasty or Angus premium hamburgers and chicken sandwiches and low-calorie or low-sodium products.
MITCHELLS &BUTLERS Company Profile
Mitchells & Butlers plc operates managed restaurants and pubs in the United Kingdom and Germany. The company operates its restaurants and pubs under the Sizzling Pubs, Vintage Inns, Harvester, Ember Inns, Toby Carvery, Crown Carveries, Castle, Nicholson's, O'Neill's, Alex, All Bar One, Miller & Carter, Browns, Innkeeper's Lodge, Oak Tree, Stonehouse, and Premium Country Pubs brand names. It is also involved in the leisure retailing, property management, property development, and financing activities. In addition, it owns various trademarks; and provides gift cards. It operates 1,768 managed businesses and 57 franchised businesses. Mitchells & Butlers plc was founded in 1898 and is based in Birmingham, the United Kingdom.
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