Bragg Gaming Group (NASDAQ:BRAG – Get Free Report) and Arcos Dorados (NYSE:ARCO – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.
Valuation and Earnings
This table compares Bragg Gaming Group and Arcos Dorados”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bragg Gaming Group | $103.03 million | 0.40 | -$9.18 million | ($0.36) | -3.72 |
| Arcos Dorados | $4.98 billion | 0.35 | $212.12 million | $1.22 | 6.69 |
Profitability
This table compares Bragg Gaming Group and Arcos Dorados’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bragg Gaming Group | -7.48% | -12.70% | -8.22% |
| Arcos Dorados | 5.15% | 12.50% | 2.58% |
Analyst Ratings
This is a breakdown of current ratings and price targets for Bragg Gaming Group and Arcos Dorados, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bragg Gaming Group | 1 | 3 | 1 | 0 | 2.00 |
| Arcos Dorados | 0 | 2 | 3 | 0 | 2.60 |
Bragg Gaming Group presently has a consensus target price of $5.00, indicating a potential upside of 273.13%. Arcos Dorados has a consensus target price of $10.50, indicating a potential upside of 28.68%. Given Bragg Gaming Group’s higher probable upside, equities analysts clearly believe Bragg Gaming Group is more favorable than Arcos Dorados.
Insider and Institutional Ownership
4.0% of Bragg Gaming Group shares are owned by institutional investors. Comparatively, 55.9% of Arcos Dorados shares are owned by institutional investors. 26.4% of Bragg Gaming Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Bragg Gaming Group has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Arcos Dorados has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.
Summary
Arcos Dorados beats Bragg Gaming Group on 10 of the 14 factors compared between the two stocks.
About Bragg Gaming Group
Bragg Gaming Group Inc. provides business to business online gaming technology platform and casino content aggregator worldwide. The company offers a range of games, including slot, table, card, video bingo, scratch card, and virtual sports, as well as live dealer games. It also provides player account management platform, a multi-channel and cross-product that enables operators to manage the entire product suite using one shared account and one wallet for casino, lottery, sportsbook, and other operations; and Fuze, a single integrated platform that delivers third party gaming content. In addition, the company offers turnkey and managed services; and holds various content distribution rights through partnerships with selected third-party studios. It offers its products under the Wild Streak, Spin, Atomic Slot Lab, Indigo Magic, Oryx Gaming, iCasino, and sportsbook brands. The company was formerly known as Rockies Financial Corporation and as changed its name to Bragg Gaming Group Inc. in 2018. Bragg Gaming Group Inc. was incorporated in 2004 and is headquartered in Toronto, Canada.
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.
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