Analyzing Chipotle Mexican Grill (NYSE:CMG) and Arc Group (OTCMKTS:RLLY)

Chipotle Mexican Grill (NYSE:CMG) and Arc Group (OTCMKTS:RLLY) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

91.3% of Chipotle Mexican Grill shares are held by institutional investors. 0.5% of Chipotle Mexican Grill shares are held by insiders. Comparatively, 12.4% of Arc Group 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.

Profitability

This table compares Chipotle Mexican Grill and Arc Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chipotle Mexican Grill	11.96%	49.64%	16.37%
Arc Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Chipotle Mexican Grill and Arc Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chipotle Mexican Grill	$11.93 billion	3.48	$1.54 billion	$1.09	29.64
Arc Group	N/A	N/A	N/A	N/A	N/A

Chipotle Mexican Grill has higher revenue and earnings than Arc Group.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Chipotle Mexican Grill and Arc Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chipotle Mexican Grill	1	10	23	0	2.65
Arc Group	0	0	0	0	0.00

Chipotle Mexican Grill presently has a consensus target price of $45.10, suggesting a potential upside of 39.59%. Given Chipotle Mexican Grill’s stronger consensus rating and higher possible upside, equities analysts clearly believe Chipotle Mexican Grill is more favorable than Arc Group.

Summary

Chipotle Mexican Grill beats Arc Group on 8 of the 9 factors compared between the two stocks.

About Chipotle Mexican Grill

Chipotle Mexican Grill, Inc., together with its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. It sells food and beverages through offering burritos, burrito bowls, quesadillas, tacos, and salads. The company also provides delivery and related services its app and website. It has operations in the United States, Canada, France, Germany, and the United Kingdom. Chipotle Mexican Grill, Inc. was founded in 1993 and is headquartered in Newport Beach, California.

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.