Head-To-Head Survey: McDonald’s (NYSE:MCD) vs. Arc Group (OTCMKTS:RLLY)

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

Institutional & Insider Ownership

70.3% of McDonald’s shares are owned by institutional investors. 0.3% of McDonald’s shares are owned by company insiders. Comparatively, 12.4% of Arc Group shares are owned by company 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.

Analyst Recommendations

This is a breakdown of recent recommendations for McDonald’s and Arc Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
McDonald’s	1	14	17	0	2.50
Arc Group	0	0	0	0	0.00

McDonald’s presently has a consensus price target of $334.45, suggesting a potential upside of 20.99%. Given McDonald’s’ stronger consensus rating and higher possible upside, equities analysts clearly believe McDonald’s is more favorable than Arc Group.

Valuation & Earnings

This table compares McDonald’s and Arc Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
McDonald’s	$26.89 billion	7.31	$8.56 billion	$12.13	22.79
Arc Group	N/A	N/A	N/A	N/A	N/A

McDonald’s has higher revenue and earnings than Arc Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
McDonald’s	31.62%	-442.10%	14.75%
Arc Group	N/A	N/A	N/A

Summary

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

About McDonald’s

McDonald’s Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K. The International Developmental Licensed Markets and Corporate segment consists of developmental licensee and affiliate markets in the McDonald’s system. The firm’s products include Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, wraps, McDonald’s Fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafe beverages, and other beverages. The company was founded by Raymond Albert Kroc on April 15, 1955, and is headquartered in Oak Brook, IL.

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.