Chipotle Mexican Grill (NYSE:CMG – Get Free Report) and Arc Group (OTCMKTS:RLLY – Get Free Report) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.
Profitability
This table compares Chipotle Mexican Grill and Arc Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chipotle Mexican Grill | 11.96% | 49.64% | 16.37% |
| Arc Group | N/A | N/A | N/A |
Institutional & Insider Ownership
91.3% of Chipotle Mexican Grill shares are held by institutional investors. 0.5% of Chipotle Mexican Grill shares are held by insiders. Comparatively, 12.4% of Arc Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chipotle Mexican Grill | $11.93 billion | 3.49 | $1.54 billion | $1.09 | 29.76 |
| Arc Group | N/A | N/A | N/A | N/A | N/A |
Chipotle Mexican Grill has higher revenue and earnings than Arc Group.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Chipotle Mexican Grill and Arc Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chipotle Mexican Grill | 1 | 10 | 23 | 0 | 2.65 |
| Arc Group | 0 | 0 | 0 | 0 | 0.00 |
Chipotle Mexican Grill presently has a consensus price target of $45.10, suggesting a potential upside of 39.06%. Given Chipotle Mexican Grill’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Chipotle Mexican Grill is more favorable than Arc Group.
Summary
Chipotle Mexican Grill beats Arc Group on 8 of the 9 factors compared between the two stocks.
About Chipotle Mexican Grill
Chipotle Mexican Grill, Inc., together with its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. It sells food and beverages through offering burritos, burrito bowls, quesadillas, tacos, and salads. The company also provides delivery and related services its app and website. It has operations in the United States, Canada, France, Germany, and the United Kingdom. Chipotle Mexican Grill, Inc. was founded in 1993 and is headquartered in Newport Beach, California.
About Arc Group
ARC Group, Inc. engages in the operation of Dick’s Wings brand of restaurants. It offers its traditional and boneless chicken wings, hog wings, and duck wings spun in its signature sauces and seasonings. The firm oprates through the following segments; Company-Owned Restaurants and Franchise Operations. The Company-Owned Restaurants are casual dining restaurants. The Franchise Operations segment offers franchises for the Dick’s Wings brand. It also offers craft beers under the name Dick’s Craft Beers. The company was founded in April 2000 and is headquartered in Jacksonville, FL.
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