Arcos Dorados Holdings Inc (ARCO)vsSea Ltd (SE)
ARCO
Arcos Dorados Holdings Inc
$8.20
-0.73%
CONSUMER CYCLICAL · Cap: $1.83B
SE
Sea Ltd
$86.56
-6.00%
CONSUMER CYCLICAL · Cap: $57.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Sea Ltd generates 423% more annual revenue ($25.19B vs $4.82B). SE leads profitability with a 6.4% profit margin vs 4.9%. ARCO appears more attractively valued with a PEG of 0.54. ARCO earns a higher WallStSmart Score of 70/100 (B-).
ARCO
Strong Buy70
out of 100
Grade: B-
SE
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+25.8%
Fair Value
$11.33
Current Price
$8.20
$3.13 discount
Margin of Safety
+53.1%
Fair Value
$243.96
Current Price
$86.56
$157.40 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Earnings expanding 159.4% YoY
Growing faster than its price suggests
Reasonable price relative to book value
Revenue surging 46.6% year-over-year
Large-cap with strong market position
Conservative balance sheet, low leverage
Areas to Watch
Grey zone — moderate risk
Smaller company, higher risk/reward
4.9% margin — thin
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
3.1% earnings growth
6.4% margin — thin
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : ARCO
The strongest argument for ARCO centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 12.9% demonstrates continued momentum. PEG of 0.54 suggests the stock is reasonably priced for its growth.
Bull Case : SE
The strongest argument for SE centers on Revenue Growth, Market Cap, Debt/Equity. Revenue growth of 46.6% demonstrates continued momentum. PEG of 1.36 suggests the stock is reasonably priced for its growth.
Bear Case : ARCO
The primary concerns for ARCO are Altman Z-Score, Market Cap, Profit Margin. Debt-to-equity of 2.82 is elevated, increasing financial risk. Thin 4.9% margins leave little buffer for downturns.
Bear Case : SE
The primary concerns for SE are P/E Ratio, EPS Growth, Profit Margin.
Key Dynamics to Monitor
ARCO profiles as a value stock while SE is a hypergrowth play — different risk/reward profiles.
SE carries more volatility with a beta of 1.57 — expect wider price swings.
SE is growing revenue faster at 46.6% — sustainability is the question.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ARCO scores higher overall (70/100 vs 58/100) and 12.9% revenue growth. SE offers better value entry with a 53.1% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Arcos Dorados Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Arcos Dorados Holdings Inc. is a McDonald's restaurant franchise. The company is headquartered in Montevideo, Uruguay.
Visit Website →Sea Ltd
CONSUMER CYCLICAL · INTERNET RETAIL · USA
Sea Limited is engaged in the digital entertainment, e-commerce and digital financial services businesses in Southeast Asia, Latin America, the rest of Asia and internationally. The company is headquartered in Singapore.
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