Sadot Group (NASDAQ:SDOT) versus ARKO (NASDAQ:ARKO) Critical Review

ARKO (NASDAQ:ARKOGet Free Report) and Sadot Group (NASDAQ:SDOTGet Free Report) are both small-cap consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares ARKO and Sadot Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ARKO 0.30% 8.58% 0.63%
Sadot Group -2.81% -41.55% -11.56%

Analyst Ratings

This is a summary of recent ratings and price targets for ARKO and Sadot Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ARKO 1 2 1 1 2.40
Sadot Group 1 0 0 0 1.00

ARKO presently has a consensus price target of $7.00, suggesting a potential upside of 38.34%. Given ARKO’s stronger consensus rating and higher probable upside, research analysts plainly believe ARKO is more favorable than Sadot Group.

Risk & Volatility

ARKO has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Sadot Group has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Insider & Institutional Ownership

78.3% of ARKO shares are held by institutional investors. Comparatively, 13.3% of Sadot Group shares are held by institutional investors. 22.5% of ARKO shares are held by company insiders. Comparatively, 0.4% of Sadot Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares ARKO and Sadot Group”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ARKO $7.64 billion 0.07 $22.74 million $0.14 36.14
Sadot Group $700.94 million 0.00 $3.99 million ($14.98) -0.13

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

Summary

ARKO beats Sadot Group on 14 of the 15 factors compared between the two stocks.

About ARKO

(Get Free Report)

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.

About Sadot Group

(Get Free Report)

Sadot Group Inc. provides supply chain solutions that address growing food security challenges worldwide. The company is involved in the agri-commodity sourcing and trading operations for food/feed products, such as soybean meal, wheat, and corn; and farm operations, including producing grains and tree crops in Southern Africa. The company is also involved in the food service operations across the United States. The company was formerly known as Muscle Maker Inc. and changed its name to Sadot Group Inc. Sadot Group Inc. was incorporated in 2019 and is headquartered in Fort Worth, Texas.

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