ARKO (NASDAQ:ARKO – Get Free Report) and Tilly’s (NYSE:TLYS – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.
Valuation & Earnings
This table compares ARKO and Tilly’s”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ARKO | $7.64 billion | 0.06 | $22.74 million | $0.05 | 84.00 |
| Tilly’s | $582.94 million | 0.22 | -$17.45 million | $0.06 | 70.27 |
ARKO has higher revenue and earnings than Tilly’s. Tilly’s is trading at a lower price-to-earnings ratio than ARKO, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for ARKO and Tilly’s, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ARKO | 1 | 1 | 1 | 0 | 2.00 |
| Tilly’s | 0 | 3 | 0 | 0 | 2.00 |
ARKO presently has a consensus target price of $14.50, indicating a potential upside of 245.24%. Tilly’s has a consensus target price of $5.50, indicating a potential upside of 30.46%. Given ARKO’s higher possible upside, research analysts clearly believe ARKO is more favorable than Tilly’s.
Risk and Volatility
ARKO has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Tilly’s has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500.
Profitability
This table compares ARKO and Tilly’s’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ARKO | 0.19% | 4.02% | 0.41% |
| Tilly’s | 0.34% | 2.37% | 0.61% |
Institutional and Insider Ownership
78.3% of ARKO shares are held by institutional investors. Comparatively, 76.4% of Tilly’s shares are held by institutional investors. 21.9% of ARKO shares are held by insiders. Comparatively, 26.4% of Tilly’s shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
ARKO beats Tilly’s on 8 of the 13 factors compared between the two stocks.
About ARKO
Arko Corp. operates convenience stores in the United States. It operates through Retail, Wholesale, Fleet Fueling, and GPMP segments. The Retail segment engages in the sale of fuel and merchandise to retail consumers. Its Wholesale segment supplies fuel to third-party dealers and consignment agents. The Fleet Fueling segment supplies fuel to proprietary and third-party cardlock, and issuance of proprietary fuel cards. Its GPMP segment supplies fuel to retail and wholesale segments. The company is based in Richmond, Virginia.
About Tilly’s
Tilly’s, Inc. engages in the retail of casual apparel, footwear, and accessories. Its stores are located in retail centers, including malls, lifestyle centers, power centers, community centers, outlet centers, and street-front locations. The company was founded by Hezy Shaked and Tilly Levine in 1982 and is headquartered in Irvine, CA.
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