Financial Survey: ARKO (NASDAQ:ARKO) vs. OneWater Marine (NASDAQ:ONEW)

ARKO (NASDAQ:ARKO) and OneWater Marine (NASDAQ:ONEW) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and target prices for ARKO and OneWater Marine, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARKO	2	0	1	0	1.67
OneWater Marine	1	1	2	0	2.25

ARKO currently has a consensus price target of $14.50, suggesting a potential upside of 262.50%. OneWater Marine has a consensus price target of $13.00, suggesting a potential upside of 38.89%. Given ARKO’s higher probable upside, equities analysts plainly believe ARKO is more favorable than OneWater Marine.

Insider and Institutional Ownership

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

Volatility & 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.

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%

Valuation & Earnings

This table compares ARKO and OneWater Marine”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	80.00
OneWater Marine	$1.87 billion	0.08	-$114.58 million	($7.46)	-1.25

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. is a recreational marine retailer that sells new and pre-owned boats through a network of dealerships across the United States. Its offerings include a range of recreational vessels, such as fishing boats, pontoons, sport boats and yachts. The company also provides boating-related services, including maintenance and repairs, parts and accessories, and financing and insurance assistance. These services support customers throughout the boat ownership process. OneWater Marine was established in 2014 and grew through the combination and acquisition of marine dealerships.