Arc Group (OTCMKTS:RLLY) versus BJ’s Restaurants (NASDAQ:BJRI) Critical Review

Arc Group (OTCMKTS:RLLY) and BJ’s Restaurants (NASDAQ:BJRI) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Profitability

This table compares Arc Group and BJ’s Restaurants’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arc Group	N/A	N/A	N/A
BJ’s Restaurants	2.23%	12.92%	4.67%

Institutional and Insider Ownership

100.0% of BJ’s Restaurants shares are held by institutional investors. 12.4% of Arc Group shares are held by insiders. Comparatively, 4.9% of BJ’s Restaurants 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Arc Group and BJ’s Restaurants, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arc Group	0	0	0	0	0.00
BJ’s Restaurants	2	6	3	0	2.09

BJ’s Restaurants has a consensus target price of $38.75, indicating a potential downside of 2.60%. Given Arc Group’s higher possible upside, equities analysts clearly believe Arc Group is more favorable than BJ’s Restaurants.

Valuation & Earnings

This table compares Arc Group and BJ’s Restaurants”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arc Group	N/A	N/A	N/A	N/A	N/A
BJ’s Restaurants	$1.36 billion	0.62	$16.69 million	$1.34	29.69

BJ’s Restaurants has higher revenue and earnings than Arc Group.

Summary

BJ’s Restaurants beats Arc Group on 7 of the 9 factors compared between the two stocks.

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.

About BJ’s Restaurants

BJ’s Restaurants, Inc. owns and operates casual dining restaurants in the United States. Its restaurants offer pizzas, craft and other beers, appetizers, entrées, pastas, sandwiches, specialty salads, and desserts under brand name Pizookie. The company was formerly known as Chicago Pizza & Brewery, Inc. and changed its name to BJ’s Restaurants, Inc. in August 2004. BJ’s Restaurants, Inc. was founded in 1978 and is based in Huntington Beach, California.