Comparing First Watch Restaurant Group (NASDAQ:FWRG) and Arc Group (OTCMKTS:RLLY)

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

Profitability

This table compares Arc Group and First Watch Restaurant Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arc Group	N/A	N/A	N/A
First Watch Restaurant Group	0.42%	0.83%	0.31%

Analyst Recommendations

This is a summary of recent ratings and price targets for Arc Group and First Watch Restaurant Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arc Group	0	0	0	0	0.00
First Watch Restaurant Group	1	1	8	1	2.82

First Watch Restaurant Group has a consensus price target of $20.91, indicating a potential upside of 22.28%. Given First Watch Restaurant Group’s stronger consensus rating and higher possible upside, analysts plainly believe First Watch Restaurant Group is more favorable than Arc Group.

Institutional & Insider Ownership

96.1% of First Watch Restaurant Group shares are owned by institutional investors. 12.4% of Arc Group shares are owned by insiders. Comparatively, 6.0% of First Watch Restaurant Group shares are owned 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.

Valuation & Earnings

This table compares Arc Group and First Watch Restaurant Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arc Group	N/A	N/A	N/A	N/A	N/A
First Watch Restaurant Group	$1.02 billion	1.03	$18.92 million	$0.08	213.75

First Watch Restaurant Group has higher revenue and earnings than Arc Group.

Summary

First Watch Restaurant Group beats Arc Group on 9 of the 10 factors compared between the two stocks.

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.

About First Watch Restaurant Group

First Watch Restaurant Group, Inc., through its subsidiaries, operates and franchises restaurants under the First Watch trade name in the United States. The company was formerly known as AI Fresh Super Holdco, Inc. and changed its name to First Watch Restaurant Group, Inc. in December 2019. First Watch Restaurant Group, Inc. was founded in 1983 and is based in Bradenton, Florida.