WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Best Buy Co. Inc generates 513% more annual revenue ($42.20B vs $6.89B). BBY leads profitability with a 3.0% profit margin vs 0.2%. BBY trades at a lower P/E of 17.7x. BBY earns a higher WallStSmart Score of 60/100 (C+).

ARKO

Hold

46

out of 100

Grade: D+

Growth: 4.0Profit: 4.0Value: 5.0Quality: 5.0
Piotroski: 5/9Altman Z: 2.48

BBY

Buy

60

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 4.7Quality: 6.0
Piotroski: 5/9Altman Z: 3.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARKOUndervalued (+10.4%)

Margin of Safety

+10.4%

Fair Value

$7.03

Current Price

$4.10

$2.93 discount

UndervaluedFair: $7.03Overvalued
BBYSignificantly Overvalued (-57.5%)

Margin of Safety

-57.5%

Fair Value

$42.60

Current Price

$103.41

$60.81 premium

UndervaluedFair: $42.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARKO2 strengths · Avg: 9.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
22.2%8/10

Revenue surging 22.2% year-over-year

BBY4 strengths · Avg: 9.5/10
Return on EquityProfitability
40.0%10/10

Every $100 of equity generates 40 in profit

EPS GrowthGrowth
70.1%10/10

Earnings expanding 70.1% YoY

Altman Z-ScoreHealth
3.6410/10

Safe zone — low bankruptcy risk

P/E RatioValuation
17.7x8/10

Attractively priced relative to earnings

Areas to Watch

ARKO4 concerns · Avg: 3.0/10
Market CapQuality
$425.18M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
2.9%3/10

ROE of 2.9% — below average capital efficiency

Profit MarginProfitability
0.2%3/10

0.2% margin — thin

Operating MarginProfitability
1.6%3/10

Operating margin of 1.6%

BBY4 concerns · Avg: 3.5/10
PEG RatioValuation
1.894/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.6%4/10

3.6% revenue growth

Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
3.9%3/10

Operating margin of 3.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : ARKO

The strongest argument for ARKO centers on Price/Book, Revenue Growth. Revenue growth of 22.2% demonstrates continued momentum.

Bull Case : BBY

The strongest argument for BBY centers on Return on Equity, EPS Growth, Altman Z-Score.

Bear Case : ARKO

The primary concerns for ARKO are Market Cap, Return on Equity, Profit Margin. A P/E of 47.4x leaves little room for execution misses. Debt-to-equity of 5.00 is elevated, increasing financial risk.

Bear Case : BBY

The primary concerns for BBY are PEG Ratio, Revenue Growth, Profit Margin. Thin 3.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

ARKO profiles as a growth stock while BBY is a value play — different risk/reward profiles.

BBY carries more volatility with a beta of 1.21 — expect wider price swings.

ARKO is growing revenue faster at 22.2% — sustainability is the question.

BBY generates stronger free cash flow (737M), providing more financial flexibility.

Bottom Line

BBY scores higher overall (60/100 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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