Contrasting Ark Restaurants (NASDAQ:ARKR) and Chipotle Mexican Grill (NYSE:CMG)

Ark Restaurants (NASDAQ:ARKR) and Chipotle Mexican Grill (NYSE:CMG) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Profitability

This table compares Ark Restaurants and Chipotle Mexican Grill’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ark Restaurants 3.76% 10.47% 2.63%
Chipotle Mexican Grill 8.57% 28.27% 9.50%

Institutional & Insider Ownership

16.2% of Ark Restaurants shares are held by institutional investors. Comparatively, 90.3% of Chipotle Mexican Grill shares are held by institutional investors. 40.4% of Ark Restaurants shares are held by company insiders. Comparatively, 1.0% of Chipotle Mexican Grill shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Ark Restaurants has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, Chipotle Mexican Grill has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Ark Restaurants and Chipotle Mexican Grill, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ark Restaurants 0 0 0 0 N/A
Chipotle Mexican Grill 0 9 20 0 2.69

Chipotle Mexican Grill has a consensus price target of $1,819.76, indicating a potential downside of 3.43%. Given Chipotle Mexican Grill’s higher probable upside, analysts clearly believe Chipotle Mexican Grill is more favorable than Ark Restaurants.

Earnings & Valuation

This table compares Ark Restaurants and Chipotle Mexican Grill’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ark Restaurants $106.49 million 0.52 -$4.69 million N/A N/A
Chipotle Mexican Grill $5.98 billion 8.85 $355.77 million $10.73 175.61

Chipotle Mexican Grill has higher revenue and earnings than Ark Restaurants.

Summary

Chipotle Mexican Grill beats Ark Restaurants on 10 of the 12 factors compared between the two stocks.

About Ark Restaurants

Ark Restaurants Corp. owns and operates restaurants and bars, fast food concepts and catering operations in the U.S. It operates in New York City, Florida, Washington, D.C, Las Vegas, NV and the gulf coast of Alabama. The company was founded in January 1983 and is headquartered in New York, NY.

About Chipotle Mexican Grill

Chipotle Mexican Grill, Inc. engages in the development and operation of classically-cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. It offers focused menu of burritos, tacos, burrito bowls, and salads prepared using classic cooking methods. The company was founded by Steve Ells in 1993 and is headquartered in Newport Beach, CA.

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