Reviewing Arcos Dorados (NYSE:ARCO) and iPic Entertainment (OTCMKTS:IPIC)

Arcos Dorados (NYSE:ARCO) and iPic Entertainment (OTCMKTS:IPIC) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.

Risk and Volatility

Arcos Dorados has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, iPic Entertainment has a beta of -2.08, indicating that its share price is 308% less volatile than the S&P 500.

Valuation & Earnings

This table compares Arcos Dorados and iPic Entertainment”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	0.36	$212.12 million	$1.01	7.98
iPic Entertainment	N/A	N/A	N/A	N/A	N/A

Arcos Dorados has higher revenue and earnings than iPic Entertainment.

Insider & Institutional Ownership

55.9% of Arcos Dorados shares are owned by institutional investors. 50.7% of iPic Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arcos Dorados	4.53%	8.12%	1.49%
iPic Entertainment	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings for Arcos Dorados and iPic Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcos Dorados	0	3	0	0	2.00
iPic Entertainment	0	0	0	0	0.00

Arcos Dorados currently has a consensus price target of $8.70, indicating a potential upside of 8.01%. Given Arcos Dorados’ stronger consensus rating and higher possible upside, equities analysts clearly believe Arcos Dorados is more favorable than iPic Entertainment.

Summary

Arcos Dorados beats iPic Entertainment on 8 of the 9 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 iPic Entertainment

iPic Entertainment Inc. operates restaurants and theaters in the United States. The company operates casual restaurants, farm-to-glass full-service bars, and theater auditoriums with in-theater dining. It operates restaurants under the City Perch Kitchen + Bar, Tanzy, The Tuck Room, The Tuck Room Tavern, and iPic Express brands. It operates screens in Arizona, California, Florida, Illinois, Maryland, New Jersey, New York, Texas, and Washington. The company was founded in 2010 and is headquartered in Boca Raton, Florida.