Comparing Arc Group (OTCMKTS:RLLY) & Good Times Restaurants (NASDAQ:GTIM)

Arc Group (OTCMKTS:RLLY) and Good Times Restaurants (NASDAQ:GTIM) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Earnings and Valuation

This table compares Arc Group and Good Times Restaurants”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arc Group	N/A	N/A	N/A	N/A	N/A
Good Times Restaurants	$141.63 million	0.08	$1.02 million	$0.10	11.40

Good Times Restaurants has higher revenue and earnings than Arc Group.

Profitability

This table compares Arc Group and Good Times Restaurants’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arc Group	N/A	N/A	N/A
Good Times Restaurants	0.72%	4.57%	1.75%

Institutional and Insider Ownership

12.1% of Good Times Restaurants shares are held by institutional investors. 12.4% of Arc Group shares are held by company insiders. Comparatively, 26.5% of Good Times Restaurants shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Arc Group and Good Times Restaurants, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arc Group	0	0	0	0	0.00
Good Times Restaurants	1	0	0	0	1.00

Given Arc Group’s higher possible upside, analysts clearly believe Arc Group is more favorable than Good Times Restaurants.

Summary

Good Times Restaurants beats Arc Group on 7 of the 8 factors compared between the two stocks.

About Arc Group

ARC Group, Inc. engages in the operation of Dick’s Wings brand of restaurants. It offers its traditional and boneless chicken wings, hog wings, and duck wings spun in its signature sauces and seasonings. The firm oprates through the following segments; Company-Owned Restaurants and Franchise Operations. The Company-Owned Restaurants are casual dining restaurants. The Franchise Operations segment offers franchises for the Dick’s Wings brand. It also offers craft beers under the name Dick’s Craft Beers. The company was founded in April 2000 and is headquartered in Jacksonville, FL.

About Good Times Restaurants

Good Times Restaurants Inc., through its subsidiaries, engages in the restaurant business in the United States. It operates and franchises Good Times Burgers & Frozen Custard, an upscale quick-service drive-through dining restaurant; and owns, operates, franchises, and licenses Bad Daddy's Burger Bar, a full-service upscale casual dining restaurant. The company was incorporated in 1987 and is based in Golden, Colorado.