Financial Analysis: Ark Restaurants (NASDAQ:ARKR) versus Dutch Bros (NYSE:BROS)

Ark Restaurants (NASDAQ:ARKR – Get Free Report) and Dutch Bros (NYSE:BROS – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings for Ark Restaurants and Dutch Bros, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ark Restaurants 1 0 0 0 1.00
Dutch Bros 0 4 21 1 2.88

Dutch Bros has a consensus target price of $71.88, indicating a potential upside of 89.15%. Given Dutch Bros’ stronger consensus rating and higher possible upside, analysts clearly believe Dutch Bros is more favorable than Ark Restaurants.

Earnings and Valuation

This table compares Ark Restaurants and Dutch Bros”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ark Restaurants $165.75 million 0.10 -$11.47 million ($0.88) -5.08
Dutch Bros $1.64 billion 4.05 $79.84 million $0.72 52.78

Dutch Bros has higher revenue and earnings than Ark Restaurants. Ark Restaurants is trading at a lower price-to-earnings ratio than Dutch Bros, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Ark Restaurants has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, Dutch Bros has a beta of 2.31, meaning that its share price is 131% more volatile than the S&P 500.

Insider & Institutional Ownership

32.0% of Ark Restaurants shares are owned by institutional investors. Comparatively, 85.5% of Dutch Bros shares are owned by institutional investors. 37.5% of Ark Restaurants shares are owned by company insiders. Comparatively, 38.9% of Dutch Bros shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Ark Restaurants and Dutch Bros’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ark Restaurants -2.04% -10.61% -2.58%
Dutch Bros 4.91% 10.01% 2.95%

Summary

Dutch Bros beats Ark Restaurants on 15 of the 15 factors compared between the two stocks.

About Ark Restaurants

(Get Free Report)

Ark Restaurants Corp., through its subsidiaries, owns and operates restaurants and bars in the United States. It operates restaurants in New York City; Washington, D.C.; Las Vegas, Nevada; Atlantic City, New Jersey; Florida; and Alabama, as well as fast food concepts and catering operations. The company was incorporated in 1983 and is based in New York, New York.

About Dutch Bros

(Get Free Report)

Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.

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