WallStSmart

Arko Corp (ARKO)vsBest Buy Co. Inc (BBY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Best Buy Co. Inc generates 537% more annual revenue ($41.69B vs $6.55B). BBY leads profitability with a 2.6% profit margin vs 0.4%. BBY trades at a lower P/E of 12.2x. BBY earns a higher WallStSmart Score of 64/100 (C+).

ARKO

Hold

46

out of 100

Grade: D+

Growth: 4.7Profit: 4.0Value: 7.0Quality: 5.0

BBY

Buy

64

out of 100

Grade: C+

Growth: 2.7Profit: 6.5Value: 10.0Quality: 6.8
Piotroski: 6/9Altman Z: 3.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARKOUndervalued (+10.3%)

Margin of Safety

+10.3%

Fair Value

$7.02

Current Price

$5.59

$1.43 discount

UndervaluedFair: $7.02Overvalued
BBYUndervalued (+71.6%)

Margin of Safety

+71.6%

Fair Value

$235.87

Current Price

$60.40

$175.47 discount

UndervaluedFair: $235.87Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARKO2 strengths · Avg: 8.0/10
Price/BookValuation
2.3x8/10

Reasonable price relative to book value

EPS GrowthGrowth
42.9%8/10

Earnings expanding 42.9% YoY

BBY4 strengths · Avg: 9.0/10
Return on EquityProfitability
37.0%10/10

Every $100 of equity generates 37 in profit

Altman Z-ScoreHealth
3.5410/10

Safe zone — low bankruptcy risk

P/E RatioValuation
12.2x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.10B8/10

Generating 1.1B in free cash flow

Areas to Watch

ARKO4 concerns · Avg: 3.3/10
P/E RatioValuation
33.4x4/10

Premium valuation, high expectations priced in

Market CapQuality
$558.27M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.1%3/10

ROE of 6.1% — below average capital efficiency

Profit MarginProfitability
0.4%3/10

0.4% margin — thin

BBY3 concerns · Avg: 3.0/10
EPS GrowthGrowth
3.7%4/10

3.7% earnings growth

Profit MarginProfitability
2.6%3/10

2.6% margin — thin

Revenue GrowthGrowth
-1.0%2/10

Revenue declined 1.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : ARKO

The strongest argument for ARKO centers on Price/Book, EPS Growth.

Bull Case : BBY

The strongest argument for BBY centers on Return on Equity, Altman Z-Score, P/E Ratio. PEG of 1.19 suggests the stock is reasonably priced for its growth.

Bear Case : ARKO

The primary concerns for ARKO are P/E Ratio, Market Cap, Return on Equity. Thin 0.4% margins leave little buffer for downturns.

Bear Case : BBY

The primary concerns for BBY are EPS Growth, Profit Margin, Revenue Growth. Thin 2.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

BBY carries more volatility with a beta of 1.44 — expect wider price swings.

BBY is growing revenue faster at -1.0% — sustainability is the question.

BBY generates stronger free cash flow (1.1B), providing more financial flexibility.

Monitor SPECIALTY RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BBY scores higher overall (64/100 vs 46/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Arko Corp

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

Arko Corp. The company is headquartered in Richmond, Virginia.

Best Buy Co. Inc

CONSUMER CYCLICAL · SPECIALTY RETAIL · USA

Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota.

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