Head to Head Review: ARC Group Worldwide (ARCW) and Telefonica Brasil (VIV)
ARC Group Worldwide (NASDAQ: ARCW) and Telefonica Brasil (NYSE:VIV) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
This table compares ARC Group Worldwide and Telefonica Brasil’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ARC Group Worldwide||-0.70%||-7.31%||-2.91%|
This is a summary of recent ratings for ARC Group Worldwide and Telefonica Brasil, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ARC Group Worldwide||0||1||1||0||2.50|
ARC Group Worldwide currently has a consensus target price of $5.75, suggesting a potential upside of 144.68%. Telefonica Brasil has a consensus target price of $15.00, suggesting a potential downside of 0.46%. Given ARC Group Worldwide’s higher possible upside, equities research analysts clearly believe ARC Group Worldwide is more favorable than Telefonica Brasil.
Risk and Volatility
ARC Group Worldwide has a beta of 3.42, suggesting that its stock price is 242% more volatile than the S&P 500. Comparatively, Telefonica Brasil has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.
Insider & Institutional Ownership
16.4% of ARC Group Worldwide shares are held by institutional investors. Comparatively, 10.9% of Telefonica Brasil shares are held by institutional investors. 3.2% of ARC Group Worldwide shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares ARC Group Worldwide and Telefonica Brasil’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ARC Group Worldwide||$111.99 million||0.38||$9.57 million||($0.04)||-58.75|
|Telefonica Brasil||$13.70 billion||1.86||$4.50 billion||$0.74||20.36|
Telefonica Brasil has higher revenue and earnings than ARC Group Worldwide. ARC Group Worldwide is trading at a lower price-to-earnings ratio than Telefonica Brasil, indicating that it is currently the more affordable of the two stocks.
Telefonica Brasil pays an annual dividend of $0.65 per share and has a dividend yield of 4.3%. ARC Group Worldwide does not pay a dividend. Telefonica Brasil pays out 87.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Telefonica Brasil has increased its dividend for 4 consecutive years.
Telefonica Brasil beats ARC Group Worldwide on 9 of the 14 factors compared between the two stocks.
ARC Group Worldwide Company Profile
ARC Group Worldwide, Inc. is a manufacturing company. The Company has three segments: Precision Components Group, 3DMT Group, and Flanges and Fittings Group. It provides a set of manufacturing solutions, from design and prototyping through production. Through the Company’s product offering, it provides its customers with a prototyping and production solution for both precision metal and plastic fabrication. The Precision Components Group companies provide fabricated metal components using processes, consisting of metal injection molding, precision metal stamping and hermetic sealing. The 3DMT Group focuses on rapid prototyping, short-run production and rapid tooling. The Flange and Fittings Group consists of General Flange and Forge. The Wireless Group focuses on wireless broadband technology related to propagation and optimization. The Wireless Group designs and develops hardware, including antennas, radios and related accessories.
Telefonica Brasil Company Profile
Telefonica Brasil S.A. is a mobile telecommunications company in Brazil offering postpaid mobile services. The Company also operates as a fixed telecommunications company in the state of Sao Paulo. The Company markets its mobile services under its Vivo brand. It offers its clients a portfolio of products, including mobile and fixed voice, mobile data, fixed broadband, ultra-fast broadband, Pay television, information technology and digital services. Its operations consist of local and long distance fixed telephone services; mobile services, including value-added services; data services, including broadband services and mobile data services; Pay television services through direct to home (DTH), Internet protocol television (IPTV) and cable; network services, such as rental of facilities, as well as other services; wholesale services, including interconnection; digital services; services designed specifically for corporate customers, and the sale of wireless devices and accessories.
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