Contrasting OneWater Marine (NASDAQ:ONEW) & ARKO (NASDAQ:ARKO)

ARKO (NASDAQ:ARKO) and OneWater Marine (NASDAQ:ONEW) 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 profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Profitability

This table compares ARKO and OneWater Marine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ARKO	0.14%	2.87%	0.34%
OneWater Marine	-6.72%	2.20%	0.44%

Analyst Recommendations

This is a breakdown of recent recommendations for ARKO and OneWater Marine, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARKO	2	0	1	0	1.67
OneWater Marine	1	2	2	0	2.20

ARKO currently has a consensus price target of $14.50, suggesting a potential upside of 241.98%. OneWater Marine has a consensus price target of $13.00, suggesting a potential upside of 33.33%. Given ARKO’s higher possible upside, equities research analysts clearly believe ARKO is more favorable than OneWater Marine.

Institutional & Insider Ownership

78.3% of ARKO shares are owned by institutional investors. Comparatively, 94.3% of OneWater Marine shares are owned by institutional investors. 21.9% of ARKO shares are owned by insiders. Comparatively, 19.5% of OneWater Marine shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

ARKO has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, OneWater Marine has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500.

Earnings & Valuation

This table compares ARKO and OneWater Marine”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARKO	$8.30 billion	0.06	$22.74 million	$0.05	84.80
OneWater Marine	$1.87 billion	0.09	-$114.58 million	($7.46)	-1.31

ARKO has higher revenue and earnings than OneWater Marine. OneWater Marine is trading at a lower price-to-earnings ratio than ARKO, indicating that it is currently the more affordable of the two stocks.

Summary

ARKO beats OneWater Marine on 8 of the 14 factors compared between the two stocks.

About ARKO

ARKO Corp. is a U.S. convenience-store operator and fuel distributor. Through its subsidiary GPM Investments, the company runs convenience stores that sell fuel, food, beverages, tobacco products and other everyday goods, as well as offering services such as prepared food and loyalty programs. ARKO’s stores operate under a range of banners, including fas mart, E-Z Mart, Scotchman and Village Pantry. The company also distributes fuel to independently operated locations and serves commercial customers through fuel and related services.

About OneWater Marine

OneWater Marine Inc. (NASDAQ: ONEW) is a recreational boat retailer and marine services company. The company operates a network of dealerships in the United States that sells new and pre-owned boats, including freshwater, saltwater, and specialty vessels from a range of manufacturers and brands. In addition to boat sales, OneWater Marine provides related products and services such as marine parts and accessories, maintenance and repair, storage, financing, insurance, and other boating services. Its dealerships also support customers with boat brokerage, trade-ins, and after-sale service.