Comparing Yum! Brands (NYSE:YUM) & Arc Group (OTCMKTS:RLLY)

Yum! Brands (NYSE:YUM) and Arc Group (OTCMKTS:RLLY) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Institutional and Insider Ownership

82.4% of Yum! Brands shares are held by institutional investors. 0.3% of Yum! Brands shares are held by insiders. Comparatively, 12.4% of Arc Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Yum! Brands and Arc Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yum! Brands	0	11	13	0	2.54
Arc Group	0	0	0	0	0.00

Yum! Brands presently has a consensus price target of $167.38, indicating a potential upside of 10.86%. Given Yum! Brands’ stronger consensus rating and higher probable upside, analysts clearly believe Yum! Brands is more favorable than Arc Group.

Earnings and Valuation

This table compares Yum! Brands and Arc Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yum! Brands	$7.55 billion	5.55	$1.49 billion	$5.13	29.43
Arc Group	N/A	N/A	N/A	N/A	N/A

Yum! Brands has higher revenue and earnings than Arc Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Yum! Brands	17.95%	-21.79%	24.28%
Arc Group	N/A	N/A	N/A

Summary

Yum! Brands beats Arc Group on 7 of the 9 factors compared between the two stocks.

About Yum! Brands

Yum! Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. The company operates through the KFC Division, the Taco Bell Division, the Pizza Hut Division, and the Habit Burger Grill Division segments. It also operates restaurants under the KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill brands, which specialize in chicken, pizza, made-to-order chargrilled burgers, sandwiches, Mexican-style food categories, and other food products. The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to Yum! Brands, Inc. in May 2002. Yum! Brands, Inc. was incorporated in 1997 and is headquartered in Louisville, Kentucky.

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.