National Vision Holdings, Inc. and ARKO Corp. are two prominent players in the consumer staples market, each with distinct operational models and financial characteristics. This analysis compares their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk profiles, and valuation metrics to determine which company stands out in the current landscape.
Risk and Volatility Assessment
The risk profiles of both companies exhibit notable differences. National Vision has a beta of 1.37, signifying that its stock price is 37% more volatile than that of the S&P 500, indicating higher risk. In contrast, ARKO holds a beta of 0.83, suggesting its stock is 17% less volatile than the market average. This distinction may influence investor decisions, particularly those with a lower risk tolerance.
Analyst Ratings and Profitability
Recent recommendations from analysts, as reported by MarketBeat.com, offer insights into market sentiment towards both companies. National Vision and ARKO differ significantly in terms of profitability. A comparison of their net margins, return on equity, and return on assets highlights that ARKO is performing better in several key profitability metrics.
When examining earnings, ARKO shows higher revenue and earnings per share (EPS) compared to National Vision. Despite this, National Vision is trading at a lower price-to-earnings ratio, suggesting it may be a more affordable option for value-focused investors.
Ownership Structure and Institutional Confidence
Ownership dynamics reveal additional insights into the companies’ financial health. Approximately 78.3% of ARKO shares are held by institutional investors, indicating strong confidence from large money managers, hedge funds, and endowments. In contrast, only 2.7% of National Vision shares are held by insiders, while 22.5% of ARKO shares are owned by insiders. This disparity may reflect differing perceptions of growth potential and operational stability between the two firms.
Company Overviews
Founded in 1990, National Vision operates as an optical retailer in the United States, providing a range of eyeglasses, contact lenses, and optical accessories. It functions through various branded stores, including America’s Best and Eyeglass World, and offers eye exams and health maintenance organization services. The company is headquartered in Duluth, Georgia.
In contrast, ARKO Corp. operates convenience stores and is involved in the retail and wholesale fuel markets. The company manages multiple segments, including Retail, Wholesale, Fleet Fueling, and GPMP, supplying fuel and merchandise to both consumers and third-party dealers. ARKO’s headquarters is located in Richmond, Virginia.
Conclusion
In summary, ARKO outperforms National Vision across 10 out of 15 factors considered in this comparison. Investors looking for stability may prefer ARKO due to its lower volatility and strong institutional backing, while those interested in potentially undervalued stocks might find National Vision appealing given its lower price-to-earnings ratio. As both companies continue to navigate the competitive landscape of consumer staples, their respective strengths will likely influence future investment decisions.
