Critical Comparison: ARKO (NASDAQ:ARKO) & Greystone Logistics (OTCMKTS:GLGI)

Greystone Logistics (OTCMKTS:GLGI) and ARKO (NASDAQ:ARKO) are both small-cap consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Greystone Logistics and ARKO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greystone Logistics	0	0	0	0	0.00
ARKO	1	3	1	1	2.33

ARKO has a consensus target price of $7.13, indicating a potential upside of 41.93%. Given ARKO’s stronger consensus rating and higher possible upside, analysts clearly believe ARKO is more favorable than Greystone Logistics.

Risk and Volatility

Greystone Logistics has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500. Comparatively, ARKO has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Profitability

This table compares Greystone Logistics and ARKO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Greystone Logistics	-1.86%	-4.88%	-2.10%
ARKO	0.24%	6.95%	0.52%

Earnings and Valuation

This table compares Greystone Logistics and ARKO”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greystone Logistics	$57.87 million	0.20	$2.35 million	($0.04)	-10.60
ARKO	$8.73 billion	0.06	$20.84 million	$0.11	45.64

ARKO has higher revenue and earnings than Greystone Logistics. Greystone Logistics is trading at a lower price-to-earnings ratio than ARKO, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

10.3% of Greystone Logistics shares are owned by institutional investors. Comparatively, 78.3% of ARKO shares are owned by institutional investors. 22.5% of ARKO shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

ARKO beats Greystone Logistics on 14 of the 15 factors compared between the two stocks.

About Greystone Logistics

Greystone Logistics, Inc., through its subsidiaries, manufactures and markets plastic pallets and pelletized recycled plastic resins in the United States. The company offers rackable, can, nestable, display, monoblock, half-barrel and slim keg stackable, drum, and mid duty pallets. It sells its pallets directly, as well as through a network of independent contractor distributors. The company was formerly known as PalWeb Corporation and changed its name to Greystone Logistics, Inc. in March 2005. Greystone Logistics, Inc. was incorporated in 1969 and is based in Tulsa, Oklahoma.

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.