Quarterhill (NASDAQ:QTRH) and ARC Group (OTCMKTS:ARCK) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.
Earnings and Valuation
This table compares Quarterhill and ARC Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Quarterhill||$77.40 million||1.67||-$49.12 million||($0.24)||-4.54|
|ARC Group||$9.50 million||1.27||-$280,000.00||N/A||N/A|
ARC Group has lower revenue, but higher earnings than Quarterhill.
Institutional & Insider Ownership
10.9% of Quarterhill shares are owned by institutional investors. 12.4% of ARC Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Quarterhill has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, ARC Group has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.
This table compares Quarterhill and ARC Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings for Quarterhill and ARC Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Quarterhill currently has a consensus target price of $2.00, suggesting a potential upside of 83.49%. Given Quarterhill’s higher probable upside, research analysts clearly believe Quarterhill is more favorable than ARC Group.
Quarterhill pays an annual dividend of $0.04 per share and has a dividend yield of 3.7%. ARC Group does not pay a dividend. Quarterhill pays out -16.7% of its earnings in the form of a dividend.
Quarterhill beats ARC Group on 8 of the 13 factors compared between the two stocks.
Quarterhill Inc. focuses on acquisition and management of technology companies that provides products and services worldwide. Its Technology segment licenses patent technologies to approximately 355 companies. Its patent portfolios include patents relating to 3D television, phased loop semiconductor, semiconductor manufacturing and packaging, medical stent, intelligent personal assistant, streaming video, semiconductor clocking, LED lighting, smart meter monitoring, non-volatile flash memory and other memory, building automation, enhanced image processing, computer gaming, and various other technologies; automotive headlight assemblies, microcontrollers applicable to safety-critical aerospace, and CMOS image sensors; and medical, industrial, and automotive applications. Its Mobility segment provides automated truck weigh stations; toll road systems and equipment; traffic management and safety systems; VectorSense, a tire sensor suite; Vehicle Information-In-Motion, a traffic intelligence system; integrated traffic control systems; permanent and portable slow speed weigh-in-motion systems; portable wheel load scales; traffic data collection products; vehicle and axle detection equipment; and automated vehicle identification, and other hardware and software products. It serves intelligent transportation systems industry through salespeople, distributors, agents, other contractors, and systems integrators, as well as directly. Its Factory segment creates and licenses enterprise asset management (EAM) software solutions to asset intensive industries through its salesforce, as well as Internet. It offers WorkAlign, a product suite, which consists of integrated products, such as scheduler, IIoT, mobile for EAM, maintenance budgeting, warranty tracker, and analytics; and consulting services. The company was formerly known as Wi-LAN Inc. and changed its name to Quarterhill Inc. in June 2017. Quarterhill Inc. was incorporated in 1992 and is headquartered in Kitchener, Canada.
About ARC Group
ARC Group, Inc., together with its subsidiary, owns, operates, and franchises Dick's Wings brand of restaurants in Florida and Georgia. As of August 21, 2018, the company operated 15 restaurants in Florida and 5 restaurants in Georgia under the brand name of Dick's Wings & Grill, as well as 3 Dick's Wings concession stands in Florida. It offers a selection of chicken wings, chicken tenders, quesadillas, specialty burgers and sandwiches, salads, wraps, sauces and seasonings, flatbreads, desserts, and other baked products, as well as craft beers and wines. The company was formerly known as American Restaurant Concepts, Inc. and changed its name to ARC Group, Inc. in June 2014. ARC Group, Inc. was founded in 2000 and is based in Orange Park, Florida.
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