Head-To-Head Comparison: Arc Group (OTCMKTS:RLLY) versus ONE Group Hospitality (NASDAQ:STKS)

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

Insider and Institutional Ownership

29.1% of ONE Group Hospitality shares are held by institutional investors. 25.1% of ONE Group Hospitality shares are held by company insiders. Comparatively, 12.4% of Arc Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for ONE Group Hospitality and Arc Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ONE Group Hospitality	1	3	3	1	2.50
Arc Group	0	0	0	0	0.00

ONE Group Hospitality currently has a consensus price target of $4.50, indicating a potential upside of 120.59%. Given ONE Group Hospitality’s stronger consensus rating and higher possible upside, analysts plainly believe ONE Group Hospitality is more favorable than Arc Group.

Valuation & Earnings

This table compares ONE Group Hospitality and Arc Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ONE Group Hospitality	$673.34 million	0.09	-$15.82 million	($3.73)	-0.55
Arc Group	N/A	N/A	N/A	N/A	N/A

Arc Group has lower revenue, but higher earnings than ONE Group Hospitality.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ONE Group Hospitality	-10.21%	181.12%	1.76%
Arc Group	N/A	N/A	N/A

Summary

ONE Group Hospitality beats Arc Group on 9 of the 10 factors compared between the two stocks.

About ONE Group Hospitality

The ONE Group Hospitality, Inc., a restaurant company, develops, owns, operates, manages, and licenses restaurants and lounges worldwide. It operates through STK, Kona Grill, and ONE Hospitality segments. The company also provides turn-key food and beverage services for hospitality venues, including hotels, casinos, and other locations. Its hospitality food and beverage solutions include developing, managing, and operating restaurants, bars, rooftops, pools, banqueting, catering, private dining rooms, room service, and mini bars; and offers hospitality advisory and consulting services. The company operates restaurants primarily under the STK and Kona Grill brands. The ONE Group Hospitality, Inc. was founded in 2004 and is based in Denver, Colorado.

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.