Reviewing Papa Murphy's (FRSH) & Arcos Dorados (ARCO)
Papa Murphy's (NASDAQ: FRSH) and Arcos Dorados (NYSE:ARCO) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.
This table compares Papa Murphy's and Arcos Dorados’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares Papa Murphy's and Arcos Dorados’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Papa Murphy's||$126.88 million||0.71||$2.64 million||($0.71)||-7.52|
|Arcos Dorados||$2.93 billion||0.74||$78.81 million||$0.38||26.84|
Arcos Dorados has higher revenue and earnings than Papa Murphy's. Papa Murphy's is trading at a lower price-to-earnings ratio than Arcos Dorados, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Papa Murphy's has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500. Comparatively, Arcos Dorados has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for Papa Murphy's and Arcos Dorados, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Papa Murphy's presently has a consensus price target of $4.75, indicating a potential downside of 11.05%. Arcos Dorados has a consensus price target of $10.87, indicating a potential upside of 6.54%. Given Arcos Dorados’ stronger consensus rating and higher probable upside, analysts plainly believe Arcos Dorados is more favorable than Papa Murphy's.
Insider & Institutional Ownership
32.2% of Papa Murphy's shares are owned by institutional investors. Comparatively, 36.4% of Arcos Dorados shares are owned by institutional investors. 3.1% of Papa Murphy's shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Arcos Dorados beats Papa Murphy's on 13 of the 14 factors compared between the two stocks.
Papa Murphy's Company Profile
Papa Murphy’s Holdings, Inc. is a holding company. The Company, together with its subsidiaries, is a franchisor and operator of the Take ‘N’ Bake pizza chain in the United States. The Company franchises the right to operate Take ‘N’ Bake pizza franchises and operates Take ‘N’ Bake pizza stores owned by the Company. The Company operates through three segments: Domestic Company Stores, Domestic Franchise and International. Its Domestic Franchise segment consists of its domestic franchised stores, which represent its system-wide stores and derives its revenues from franchise and development fees and the collection of franchise royalties. The Domestic Company Stores segment consists of its Company-owned stores in the United States and derives its revenues from retail sales of pizza and side items to the general public. Its International segment consists of its stores outside of the United States, all of which are franchised and derives its revenues from franchise and development fees.
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.
Receive News & Ratings for Papa Murphy's Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Papa Murphy's and related companies with MarketBeat.com's FREE daily email newsletter.