Critical Analysis: Arcos Dorados (NYSE:ARCO) & Enzyme Environmental Solutions (OTCMKTS:EESO)

Enzyme Environmental Solutions (OTCMKTS:EESO) and Arcos Dorados (NYSE:ARCO) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Valuation & Earnings

This table compares Enzyme Environmental Solutions and Arcos Dorados’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enzyme Environmental Solutions	N/A	N/A	N/A	N/A	N/A
Arcos Dorados	$4.33 billion	0.54	$181.27 million	$0.85	13.03

Arcos Dorados has higher revenue and earnings than Enzyme Environmental Solutions.

Insider and Institutional Ownership

55.9% of Arcos Dorados shares are owned by institutional investors. 37.5% of Enzyme Environmental Solutions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Enzyme Environmental Solutions and Arcos Dorados, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enzyme Environmental Solutions	0	0	0	0	N/A
Arcos Dorados	0	0	3	0	3.00

Arcos Dorados has a consensus price target of $13.38, indicating a potential upside of 20.77%.

Profitability

This table compares Enzyme Environmental Solutions and Arcos Dorados’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enzyme Environmental Solutions	N/A	N/A	N/A
Arcos Dorados	4.18%	43.72%	6.61%

Risk and Volatility

Enzyme Environmental Solutions has a beta of 2.4, indicating that its stock price is 140% more volatile than the S&P 500. Comparatively, Arcos Dorados has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Summary

Arcos Dorados beats Enzyme Environmental Solutions on 6 of the 8 factors compared between the two stocks.

About Enzyme Environmental Solutions

Enzyme Environmental Solutions, Inc. produces and sells industrial and agricultural enzyme products primarily in the United States. The company's enzyme products include cleaners, carpet shampoo cleaners, fabric prewash treatment, fleet and vehicle wash, glass and SS cleaners, bio gest, pit liquefiers, grease busters, industrial cleaners, laundry detergents, and mold and mildew cleaners. It also provides odor eliminators, rinse free floor cleaners, septic tank cleaners, tile and bath cleaners, toilet bowl cleaners, upholstery cleaners, vomit and odor remediation kits, and whirlpool and spa green clean systems. In addition, the company offers enzyme solutions to eliminate odor and organic matter, including blood stains; to clean carpets and counter tops; remove wall papers; and as a cleaner/degreaser. Its products are used in various industries, such as cleaning, health, and manufacturing, as well as for use as dietary supplements for humans and animals. The company was formerly known as Cucos Inc. and changed its name to Enzyme Environmental Solutions, Inc. in March 2008. Enzyme Environmental Solutions, Inc. was incorporated in 1981 and is based in Chicago, Illinois.

About Arcos Dorados

Arcos Dorados Holdings Inc. operates as a franchisee of McDonald's restaurants. It has the exclusive right to own, operate, and grant franchises of McDonald's restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. The company was founded in 2007 and is based in Montevideo, Uruguay.