Full House Resorts (NASDAQ:FLL) vs. Arcos Dorados (NYSE:ARCO) Head-To-Head Survey

Full House Resorts (NASDAQ:FLL) and Arcos Dorados (NYSE:ARCO) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.

Risk & Volatility

Full House Resorts has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, Arcos Dorados has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Profitability

This table compares Full House Resorts and Arcos Dorados’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Full House Resorts	-12.06%	-473.31%	-5.78%
Arcos Dorados	5.15%	12.50%	2.58%

Institutional and Insider Ownership

37.7% of Full House Resorts shares are owned by institutional investors. Comparatively, 55.9% of Arcos Dorados shares are owned by institutional investors. 10.6% of Full House Resorts shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Full House Resorts and Arcos Dorados, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Full House Resorts	1	1	3	0	2.40
Arcos Dorados	0	2	3	1	2.83

Full House Resorts currently has a consensus price target of $3.50, indicating a potential upside of 361.38%. Arcos Dorados has a consensus price target of $9.75, indicating a potential upside of 43.91%. Given Full House Resorts’ higher probable upside, analysts clearly believe Full House Resorts is more favorable than Arcos Dorados.

Valuation & Earnings

This table compares Full House Resorts and Arcos Dorados”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Full House Resorts	$302.38 million	0.09	-$40.20 million	($1.02)	-0.74
Arcos Dorados	$4.68 billion	0.31	$212.12 million	$1.22	5.55

Arcos Dorados has higher revenue and earnings than Full House Resorts. Full House Resorts is trading at a lower price-to-earnings ratio than Arcos Dorados, indicating that it is currently the more affordable of the two stocks.

Summary

Arcos Dorados beats Full House Resorts on 10 of the 13 factors compared between the two stocks.

About Full House Resorts

Full House Resorts, Inc. owns, leases, operates, develops, manages, and invests in casinos, and related hospitality and entertainment facilities in the United States. It operates through Midwest & South, West, and Contracted Sports Wagering segments. The company's properties include American Place in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock County, Mississippi; Rising Star Casino Resort in Rising Sun, Indiana; Bronco Billy's Casino and Chamonix Casino Hotel in Cripple Creek, Colorado; Stockman's Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. It also offers online sports wagering services. The company was incorporated in 1987 and is headquartered in Las Vegas, Nevada.

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.