Arcos Dorados Holdings Inc (ARCO)vsSea Ltd (SE)
ARCO
Arcos Dorados Holdings Inc
$7.94
-0.87%
CONSUMER CYCLICAL · Cap: $1.70B
SE
Sea Ltd
$108.68
+2.30%
CONSUMER CYCLICAL · Cap: $65.07B
Smart Verdict
WallStSmart Research — data-driven comparison
Sea Ltd generates 457% more annual revenue ($27.72B vs $4.98B). SE leads profitability with a 5.9% profit margin vs 5.2%. ARCO appears more attractively valued with a PEG of 0.54. ARCO earns a higher WallStSmart Score of 72/100 (B).
ARCO
Strong Buy72
out of 100
Grade: B
SE
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+28.2%
Fair Value
$11.71
Current Price
$7.94
$3.77 discount
Margin of Safety
+56.1%
Fair Value
$260.75
Current Price
$108.68
$152.07 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 99.3% YoY
Growing faster than its price suggests
Reasonable price relative to book value
Revenue surging 48.1% year-over-year
Large-cap with strong market position
Generating 1.1B in free cash flow
Areas to Watch
Grey zone — moderate risk
Smaller company, higher risk/reward
5.2% margin — thin
Elevated debt levels
Distress zone — elevated risk
5.9% margin — thin
Premium valuation, high expectations priced in
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 14.3% 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, Free Cash Flow. Revenue growth of 48.1% demonstrates continued momentum. PEG of 1.04 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 2.65 is elevated, increasing financial risk.
Bear Case : SE
The primary concerns for SE are Altman Z-Score, Profit Margin, P/E Ratio. A P/E of 41.5x leaves little room for execution misses.
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 1.52 — expect wider price swings.
SE is growing revenue faster at 48.1% — sustainability is the question.
SE generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
ARCO scores higher overall (72/100 vs 56/100) and 14.3% revenue growth. SE offers better value entry with a 56.1% 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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