Ark Restaurants (NASDAQ:ARKR – Get Free Report) and Flutter Entertainment (NYSE:FLUT – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.
Profitability
This table compares Ark Restaurants and Flutter Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ark Restaurants | -2.04% | -10.61% | -2.58% |
| Flutter Entertainment | -4.39% | 7.27% | 2.33% |
Volatility and Risk
Ark Restaurants has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, Flutter Entertainment has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and price targets for Ark Restaurants and Flutter Entertainment, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ark Restaurants | 1 | 0 | 0 | 0 | 1.00 |
| Flutter Entertainment | 3 | 9 | 17 | 2 | 2.58 |
Flutter Entertainment has a consensus price target of $137.52, indicating a potential upside of 71.95%. Given Flutter Entertainment’s stronger consensus rating and higher possible upside, analysts plainly believe Flutter Entertainment is more favorable than Ark Restaurants.
Earnings & Valuation
This table compares Ark Restaurants and Flutter Entertainment”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ark Restaurants | $165.75 million | 0.10 | -$11.47 million | ($0.88) | -5.09 |
| Flutter Entertainment | $16.38 billion | 0.85 | -$310.00 million | ($4.30) | -18.60 |
Ark Restaurants has higher earnings, but lower revenue than Flutter Entertainment. Flutter Entertainment is trading at a lower price-to-earnings ratio than Ark Restaurants, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
32.0% of Ark Restaurants shares are held by institutional investors. 37.5% of Ark Restaurants shares are held by insiders. Comparatively, 0.1% of Flutter Entertainment 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.
Summary
Flutter Entertainment beats Ark Restaurants on 9 of the 15 factors compared between the two stocks.
About Ark Restaurants
Ark Restaurants Corp., through its subsidiaries, owns and operates restaurants and bars in the United States. It operates restaurants in New York City; Washington, D.C.; Las Vegas, Nevada; Atlantic City, New Jersey; Florida; and Alabama, as well as fast food concepts and catering operations. The company was incorporated in 1983 and is based in New York, New York.
About Flutter Entertainment
Flutter Entertainment plc operates as a sports betting and gaming company in the United Kingdom, Ireland, Australia, the United States, Italy, and internationally. The company operates through four segments: UK & Ireland, Australia, International, and US. It offers sports betting, iGaming, daily fantasy sports, online racing wagering, and TV broadcasting products; sportsbooks and exchange sports betting products, and gaming products; and online sports betting. In addition, it provides online poker, casino, and rummy. Further, it provides sports betting and gaming services through paddypower.com, betfair.com, sportsbet.com.au, tvg.com, us.betfair.com, fanduel.com, adjarabet.com, pokerstars.com, Skybet.com, tombola.com, sisal.com, and maxbet.rs websites under the FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, tombola, Betfair, MaxBet, TVG, Stardust, Junglee Games, and Adjarabet brands, as well as live poker tours and events. The company was formerly known as Paddy Power Betfair plc and changed its name to Flutter Entertainment plc in 2019. Flutter Entertainment plc was incorporated in 1958 and is headquartered in Dublin, Ireland.
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