Head to Head Analysis: Arko (ARKO) vs. Its Competitors

Arko (NASDAQ: ARKO) is one of 48 publicly-traded companies in the “Grocery stores” industry, but how does it compare to its peers? We will compare Arko to related businesses based on the strength of its risk, valuation, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Insider & Institutional Ownership

66.8% of Arko shares are held by institutional investors. Comparatively, 56.8% of shares of all “Grocery stores” companies are held by institutional investors. 32.7% of Arko shares are held by company insiders. Comparatively, 17.5% of shares of all “Grocery stores” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Arko and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arko 0.58% 18.22% 1.40%
Arko Competitors 1.82% 21.75% 4.64%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Arko and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arko 0 0 3 1 3.25
Arko Competitors 1103 2613 2664 82 2.27

Arko presently has a consensus price target of $12.67, suggesting a potential upside of 23.46%. As a group, “Grocery stores” companies have a potential upside of 18.66%. Given Arko’s stronger consensus rating and higher possible upside, analysts clearly believe Arko is more favorable than its peers.

Earnings and Valuation

This table compares Arko and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Arko $3.91 billion $13.19 million 64.13
Arko Competitors $22.97 billion $442.89 million 8.65

Arko’s peers have higher revenue and earnings than Arko. Arko is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Arko has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500. Comparatively, Arko’s peers have a beta of 0.38, indicating that their average share price is 62% less volatile than the S&P 500.

Summary

Arko beats its peers on 7 of the 13 factors compared.

Arko Company Profile

Arko Corp. operates convenience stores in the United States. It operates through three segments: Retail, Wholesale, and GPM Petroleum. The Retail segment engages in the sale of fuel and merchandise to retail consumers. The Wholesale segment supplies fuel to third-party dealers and consignment agents. The GPM Petroleum segment supplies fuel to sub-wholesalers and bulk purchasers. The company operates approximately 2,950 locations comprising approximately 1,350 company-operated stores and approximately 1,600 dealer sites. Arko Corp. is based in Richmond, Virginia.

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