Head-To-Head Analysis: Arcos Dorados (NYSE:ARCO) versus Sportradar Group (NASDAQ:SRAD)

Sportradar Group (NASDAQ:SRAD) and Arcos Dorados (NYSE:ARCO) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Insider and Institutional Ownership

55.9% of Arcos Dorados shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Sportradar Group and Arcos Dorados”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sportradar Group	$1.46 billion	2.47	$113.50 million	$0.06	200.50
Arcos Dorados	$4.68 billion	0.30	$212.12 million	$1.22	5.52

Arcos Dorados has higher revenue and earnings than Sportradar Group. Arcos Dorados is trading at a lower price-to-earnings ratio than Sportradar Group, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Sportradar Group has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, Arcos Dorados has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Sportradar Group and Arcos Dorados, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sportradar Group	0	9	9	1	2.58
Arcos Dorados	0	2	3	1	2.83

Sportradar Group presently has a consensus price target of $18.03, suggesting a potential upside of 49.89%. Arcos Dorados has a consensus price target of $9.75, suggesting a potential upside of 44.87%. Given Sportradar Group’s higher probable upside, equities research analysts plainly believe Sportradar Group is more favorable than Arcos Dorados.

Profitability

This table compares Sportradar Group and Arcos Dorados’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sportradar Group	1.23%	1.89%	0.65%
Arcos Dorados	5.15%	12.50%	2.58%

Summary

Arcos Dorados beats Sportradar Group on 8 of the 13 factors compared between the two stocks.

About Sportradar Group

Sportradar Group AG, together with its subsidiaries, provides sports data services for the sports betting and media industries in the United Kingdom, the United States, Malta, Switzerland, and internationally. Its sports data services to the bookmaking under the Betradar brand name, and to the international media industry under the Sportradar Media Services brand name. The company offers mission-critical software, data, and content to sports leagues and federations, betting operators, and media companies. It also provides sports entertainment, gaming, and sports solutions, as well as live streaming solution for online, mobile, and retail sports betting. In addition, its software solutions address the entire sports betting value chain from traffic generation and advertising technology to the collection, processing, and extrapolation of data and odds, as well as to visualization solutions, risk management, and platform services. Sportradar Group AG was founded in 2001 and is headquartered in Sankt Gallen, Switzerland.

About Arcos Dorados

Arcos Dorados Holdings Inc. operates as a franchisee of McDonald’s restaurants. It has the exclusive right to own, operate, and grant franchises of McDonald’s restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. The company was founded in 2007 and is based in Montevideo, Uruguay.