Critical Analysis: Arko (ARKO) & Its Peers

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

Earnings and Valuation

This table compares Arko and its rivals 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 8.68

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

Profitability

This table compares Arko and its rivals’ 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%

Risk and Volatility

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

Analyst Recommendations

This is a breakdown of current ratings for Arko and its rivals, 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 target price of $12.67, indicating a potential upside of 23.46%. As a group, “Grocery stores” companies have a potential upside of 18.98%. Given Arko’s stronger consensus rating and higher probable upside, equities analysts plainly believe Arko is more favorable than its rivals.

Institutional & Insider 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, endowments and large money managers believe a company is poised for long-term growth.

Summary

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

About Arko

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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