Arcos Dorados Holdings Inc (ARCO)vsSea Ltd (SE)
ARCO
Arcos Dorados Holdings Inc
$6.90
-0.29%
CONSUMER CYCLICAL · Cap: $1.67B
SE
Sea Ltd
$76.55
+1.82%
CONSUMER CYCLICAL · Cap: $57.43B
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 74/100 (B).
ARCO
Strong Buy74
out of 100
Grade: B
SE
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+28.1%
Fair Value
$11.69
Current Price
$6.90
$4.79 discount
Margin of Safety
+55.2%
Fair Value
$255.67
Current Price
$76.55
$179.12 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
Growing faster than its price suggests
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
Premium valuation, high expectations priced in
Distress zone — elevated risk
5.9% margin — thin
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, PEG Ratio. Revenue growth of 48.1% demonstrates continued momentum. PEG of 0.99 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 P/E Ratio, Altman Z-Score, 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 1.55 — 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 (74/100 vs 60/100) and 14.3% revenue growth. SE offers better value entry with a 55.2% 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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