Head to Head Review: Arcos Dorados (NYSE:ARCO) versus Super Hi International (NASDAQ:HDL)

Arcos Dorados (NYSE:ARCO) and Super Hi International (NASDAQ:HDL) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Arcos Dorados and Super Hi International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcos Dorados	0	0	1	0	3.00
Super Hi International	0	0	0	0	N/A

Arcos Dorados currently has a consensus price target of $15.00, suggesting a potential upside of 63.40%. Given Arcos Dorados’ higher probable upside, equities research analysts plainly believe Arcos Dorados is more favorable than Super Hi International.

Profitability

This table compares Arcos Dorados and Super Hi International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arcos Dorados	3.90%	38.57%	6.13%
Super Hi International	N/A	N/A	N/A

Insider and Institutional Ownership

55.9% of Arcos Dorados shares are held by institutional investors. 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.

Valuation & Earnings

This table compares Arcos Dorados and Super Hi International’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arcos Dorados	$4.49 billion	0.43	$181.27 million	$0.81	11.33
Super Hi International	$686.36 million	1.47	N/A	N/A	N/A

Arcos Dorados has higher revenue and earnings than Super Hi International.

Summary

Arcos Dorados beats Super Hi International on 7 of the 8 factors compared between the two stocks.

About Arcos Dorados

Arcos Dorados Holdings Inc. operates as a franchisee of McDonald's restaurants. It has the exclusive right to own, operate, and grant franchises of McDonald's restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. The company was founded in 2007 and is based in Montevideo, Uruguay.

About Super Hi International

Super Hi International Holding Ltd., an investment holding company, operates Haidilao branded Chinese cuisine restaurants in Asia, North America, and internationally. The company is involved in the food delivery business. It also engages in sale of hot pot condiment products and food ingredients. The company was incorporated in 2022 and is based in Singapore.