Arcos Dorados (NYSE:ARCO – Get Free Report) and Bragg Gaming Group (NASDAQ:BRAG – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Analyst Recommendations
This is a summary of current ratings and target prices for Arcos Dorados and Bragg Gaming Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arcos Dorados | 0 | 2 | 3 | 0 | 2.60 |
| Bragg Gaming Group | 1 | 3 | 1 | 0 | 2.00 |
Arcos Dorados presently has a consensus target price of $10.50, suggesting a potential upside of 28.68%. Bragg Gaming Group has a consensus target price of $5.00, suggesting a potential upside of 273.13%. Given Bragg Gaming Group’s higher probable upside, analysts clearly believe Bragg Gaming Group is more favorable than Arcos Dorados.
Volatility and Risk
Institutional and Insider Ownership
55.9% of Arcos Dorados shares are owned by institutional investors. Comparatively, 4.0% of Bragg Gaming Group shares are owned by institutional investors. 26.4% of Bragg Gaming Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Arcos Dorados and Bragg Gaming Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arcos Dorados | $4.68 billion | 0.37 | $212.12 million | $1.22 | 6.69 |
| Bragg Gaming Group | $119.98 million | 0.34 | -$9.18 million | ($0.36) | -3.72 |
Arcos Dorados has higher revenue and earnings than Bragg Gaming Group. Bragg Gaming Group is trading at a lower price-to-earnings ratio than Arcos Dorados, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Arcos Dorados and Bragg Gaming Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arcos Dorados | 5.15% | 12.50% | 2.58% |
| Bragg Gaming Group | -7.48% | -12.70% | -8.22% |
Summary
Arcos Dorados beats Bragg Gaming Group on 11 of the 14 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 Bragg Gaming Group
Bragg Gaming Group Inc. provides business to business online gaming technology platform and casino content aggregator worldwide. The company offers a range of games, including slot, table, card, video bingo, scratch card, and virtual sports, as well as live dealer games. It also provides player account management platform, a multi-channel and cross-product that enables operators to manage the entire product suite using one shared account and one wallet for casino, lottery, sportsbook, and other operations; and Fuze, a single integrated platform that delivers third party gaming content. In addition, the company offers turnkey and managed services; and holds various content distribution rights through partnerships with selected third-party studios. It offers its products under the Wild Streak, Spin, Atomic Slot Lab, Indigo Magic, Oryx Gaming, iCasino, and sportsbook brands. The company was formerly known as Rockies Financial Corporation and as changed its name to Bragg Gaming Group Inc. in 2018. Bragg Gaming Group Inc. was incorporated in 2004 and is headquartered in Toronto, Canada.
Receive News & Ratings for Arcos Dorados Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Arcos Dorados and related companies with MarketBeat.com's FREE daily email newsletter.
