Financial Survey: ARKO (NASDAQ:ARKO) and Synergy CHC (NASDAQ:SNYR)
by Kim Johansen · The Markets DailySynergy CHC (NASDAQ:SNYR – Get Free Report) and ARKO (NASDAQ:ARKO – Get Free Report) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.
Volatility & Risk
Synergy CHC has a beta of -0.27, suggesting that its share price is 127% less volatile than the S&P 500. Comparatively, ARKO has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.
Profitability
This table compares Synergy CHC and ARKO’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Synergy CHC | -60.02% | -19.51% | -30.30% |
| ARKO | 0.38% | 9.10% | 0.80% |
Analyst Ratings
This is a breakdown of recent recommendations for Synergy CHC and ARKO, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Synergy CHC | 2 | 0 | 2 | 0 | 2.00 |
| ARKO | 1 | 0 | 0 | 2 | 3.00 |
Synergy CHC presently has a consensus target price of $6.25, suggesting a potential upside of 3,121.65%. ARKO has a consensus target price of $8.00, suggesting a potential downside of 0.87%. Given Synergy CHC’s higher probable upside, equities research analysts plainly believe Synergy CHC is more favorable than ARKO.
Institutional and Insider Ownership
78.3% of ARKO shares are owned by institutional investors. 32.9% of Synergy CHC shares are owned by insiders. Comparatively, 22.5% of ARKO shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Synergy CHC and ARKO”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Synergy CHC | $30.38 million | 0.10 | -$12.34 million | ($1.40) | -0.14 |
| ARKO | $7.64 billion | 0.12 | $22.74 million | $0.19 | 42.47 |
ARKO has higher revenue and earnings than Synergy CHC. Synergy CHC is trading at a lower price-to-earnings ratio than ARKO, indicating that it is currently the more affordable of the two stocks.
Summary
ARKO beats Synergy CHC on 12 of the 15 factors compared between the two stocks.
About Synergy CHC
Synergy CHC Corp. engages in the marketing and distribution of branded health and wellness products. The company was founded on December 29, 2010 and is headquartered in Westbrook, ME.
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.