Arcos Dorados (NYSE:ARCO) & Sportradar Group (NASDAQ:SRAD) Financial Contrast

Arcos Dorados (NYSE:ARCO) and Sportradar Group (NASDAQ:SRAD) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Institutional and Insider Ownership

55.9% of Arcos Dorados shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Arcos Dorados has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Sportradar Group has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500.

Profitability

This table compares Arcos Dorados and Sportradar Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arcos Dorados	N/A	N/A	N/A
Sportradar Group	N/A	N/A	N/A

Valuation & Earnings

This table compares Arcos Dorados and Sportradar Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arcos Dorados	$4.98 billion	0.29	$257.01 million	$1.22	5.68
Sportradar Group	$1.39 billion	2.69	$17.97 million	$0.06	207.20

Arcos Dorados has higher revenue and earnings than Sportradar Group. Arcos Dorados is trading at a lower price-to-earnings ratio than Sportradar Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Arcos Dorados and Sportradar Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcos Dorados	0	2	3	1	2.83
Sportradar Group	0	9	9	2	2.65

Arcos Dorados currently has a consensus target price of $9.75, suggesting a potential upside of 40.61%. Sportradar Group has a consensus target price of $18.03, suggesting a potential upside of 45.04%. Given Sportradar Group’s higher probable upside, analysts clearly believe Sportradar Group is more favorable than Arcos Dorados.

Summary

Sportradar Group beats Arcos Dorados on 6 of the 11 factors compared between the two stocks.

About Arcos Dorados

Arcos Dorados Holdings Inc. operates as a franchisee of McDonald’s restaurants. It has the exclusive right to own, operate, and grant franchises of McDonald’s restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. The company was founded in 2007 and is based in Montevideo, Uruguay.

About Sportradar Group

Sportradar Group AG, together with its subsidiaries, provides sports data services for the sports betting and media industries in the United Kingdom, the United States, Malta, Switzerland, and internationally. Its sports data services to the bookmaking under the Betradar brand name, and to the international media industry under the Sportradar Media Services brand name. The company offers mission-critical software, data, and content to sports leagues and federations, betting operators, and media companies. It also provides sports entertainment, gaming, and sports solutions, as well as live streaming solution for online, mobile, and retail sports betting. In addition, its software solutions address the entire sports betting value chain from traffic generation and advertising technology to the collection, processing, and extrapolation of data and odds, as well as to visualization solutions, risk management, and platform services. Sportradar Group AG was founded in 2001 and is headquartered in Sankt Gallen, Switzerland.