Burlington Stores (NYSE:BURL – Get Free Report) and ARKO (NASDAQ:ARKO – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.
Risk and Volatility
Burlington Stores has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, ARKO has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.
Earnings and Valuation
This table compares Burlington Stores and ARKO”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Burlington Stores | $12.22 billion | 1.27 | $610.15 million | $11.14 | 22.18 |
| ARKO | $7.64 billion | 0.06 | $22.74 million | $0.07 | 56.71 |
Burlington Stores has higher revenue and earnings than ARKO. Burlington Stores is trading at a lower price-to-earnings ratio than ARKO, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Burlington Stores and ARKO, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Burlington Stores | 1 | 4 | 15 | 0 | 2.70 |
| ARKO | 1 | 1 | 1 | 0 | 2.00 |
Burlington Stores currently has a consensus price target of $368.06, indicating a potential upside of 48.93%. ARKO has a consensus price target of $14.50, indicating a potential upside of 265.24%. Given ARKO’s higher possible upside, analysts clearly believe ARKO is more favorable than Burlington Stores.
Institutional and Insider Ownership
78.3% of ARKO shares are owned by institutional investors. 1.3% of Burlington Stores shares are owned by insiders. Comparatively, 21.9% of ARKO shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Burlington Stores and ARKO’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Burlington Stores | 5.85% | 41.72% | 7.61% |
| ARKO | 0.14% | 3.01% | 0.34% |
Summary
Burlington Stores beats ARKO on 10 of the 14 factors compared between the two stocks.
About Burlington Stores
Burlington Stores, Inc. operates as a retailer of branded merchandise in the United States. The company provides fashion-focused merchandise, including women's ready-to-wear apparel, menswear, youth apparel, footwear, accessories, toys, gifts, and coats, as well as baby, home, and beauty products. It operates stores under the Burlington Stores, and Cohoes Fashions brand names in Washington D.C. and Puerto Rico. Burlington Stores, Inc. was founded in 1972 and is headquartered in Burlington, New Jersey.
About ARKO
Arko Corp. operates convenience stores in the United States. It operates through Retail, Wholesale, Fleet Fueling, and GPMP segments. The Retail segment engages in the sale of fuel and merchandise to retail consumers. Its Wholesale segment supplies fuel to third-party dealers and consignment agents. The Fleet Fueling segment supplies fuel to proprietary and third-party cardlock, and issuance of proprietary fuel cards. Its GPMP segment supplies fuel to retail and wholesale segments. The company is based in Richmond, Virginia.
Receive News & Ratings for Burlington Stores Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Burlington Stores and related companies with MarketBeat.com's FREE daily email newsletter.
