Head-To-Head Review: BBB Foods (NYSE:TBBB) vs. Arko (NASDAQ:ARKO)

BBB Foods (NYSE:TBBB) and Arko (NASDAQ:ARKO) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Insider and Institutional Ownership

8.4% of BBB Foods shares are owned by institutional investors. Comparatively, 78.3% of Arko shares are owned by institutional investors. 21.6% of Arko shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares BBB Foods and Arko”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BBB Foods	$53.41 billion	0.06	-$17.30 million	N/A	N/A
Arko	$8.97 billion	0.08	$34.37 million	$0.16	40.81

Arko has lower revenue, but higher earnings than BBB Foods.

Profitability

This table compares BBB Foods and Arko’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BBB Foods	N/A	N/A	N/A
Arko	0.27%	8.88%	0.66%

Analyst Ratings

This is a summary of recent ratings and recommmendations for BBB Foods and Arko, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BBB Foods	0	5	3	0	2.38
Arko	0	2	0	0	2.00

BBB Foods currently has a consensus target price of $30.57, suggesting a potential upside of 2.93%. Arko has a consensus target price of $6.13, suggesting a potential downside of 6.20%. Given BBB Foods’ stronger consensus rating and higher probable upside, equities research analysts clearly believe BBB Foods is more favorable than Arko.

Summary

Arko beats BBB Foods on 7 of the 11 factors compared between the two stocks.

About BBB Foods

BBB Foods Inc., through its subsidiaries, operates a chain of grocery retail stores in Mexico. It offers household cleaning, personal hyenine, cosmetics and beauty, pharmacy, and general merchandise products, as well as jellies and desserts, foods and drinks, pet supplies, coffee, tea, chocolates, breads, dry and frozen foods, snacks and sweets, and toilet papers and napkins. The company also provides branded, private label, and spot products. It serves low-to-middle income households through online channels. BBB Foods Inc. was incorporated in 2004 and is headquartered in Mexico City, Mexico.

About Arko

Arko Corp. operates convenience stores in the United States. It operates through Retail, Wholesale, Fleet Fueling, and GPMP segments. The Retail segment engages in the sale of fuel and merchandise to retail consumers. Its Wholesale segment supplies fuel to third-party dealers and consignment agents. The Fleet Fueling segment supplies fuel to proprietary and third-party cardlock, and issuance of proprietary fuel cards. Its GPMP segment supplies fuel to retail and wholesale segments. The company is based in Richmond, Virginia.