ARKO (NASDAQ:ARKO – Get Free Report) and Burlington Stores (NYSE:BURL – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
Analyst Recommendations
This is a breakdown of recent recommendations for ARKO and Burlington Stores, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ARKO | 1 | 1 | 1 | 0 | 2.00 |
| Burlington Stores | 1 | 5 | 15 | 0 | 2.67 |
ARKO presently has a consensus target price of $14.50, indicating a potential upside of 277.60%. Burlington Stores has a consensus target price of $368.06, indicating a potential upside of 53.48%. Given ARKO’s higher probable upside, equities research analysts clearly believe ARKO is more favorable than Burlington Stores.
Valuation & Earnings
This table compares ARKO and Burlington Stores”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ARKO | $7.64 billion | 0.06 | $22.74 million | $0.07 | 54.86 |
| Burlington Stores | $11.57 billion | 1.30 | $610.15 million | $11.14 | 21.53 |
Burlington Stores has higher revenue and earnings than ARKO. Burlington Stores is trading at a lower price-to-earnings ratio than ARKO, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ARKO and Burlington Stores’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ARKO | 0.19% | 4.02% | 0.41% |
| Burlington Stores | 5.85% | 41.72% | 7.61% |
Institutional and Insider Ownership
78.3% of ARKO shares are owned by institutional investors. 21.9% of ARKO shares are owned by company insiders. Comparatively, 1.3% of Burlington Stores shares are owned by company insiders. 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.
Risk and Volatility
ARKO has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Burlington Stores has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500.
Summary
Burlington Stores beats ARKO on 10 of the 14 factors compared between the two stocks.
About ARKO
Arko Corp. operates convenience stores in the United States. It operates through Retail, Wholesale, Fleet Fueling, and GPMP segments. The Retail segment engages in the sale of fuel and merchandise to retail consumers. Its Wholesale segment supplies fuel to third-party dealers and consignment agents. The Fleet Fueling segment supplies fuel to proprietary and third-party cardlock, and issuance of proprietary fuel cards. Its GPMP segment supplies fuel to retail and wholesale segments. The company is based in Richmond, Virginia.
About Burlington Stores
Burlington Stores, Inc. operates as a retailer of branded merchandise in the United States. The company provides fashion-focused merchandise, including women's ready-to-wear apparel, menswear, youth apparel, footwear, accessories, toys, gifts, and coats, as well as baby, home, and beauty products. It operates stores under the Burlington Stores, and Cohoes Fashions brand names in Washington D.C. and Puerto Rico. Burlington Stores, Inc. was founded in 1972 and is headquartered in Burlington, New Jersey.
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