Analyzing ARKO (NASDAQ:ARKO) and Yunhong Green CTI (NASDAQ:YHGJ)

Yunhong Green CTI (NASDAQ:YHGJ) and ARKO (NASDAQ:ARKO) are both small-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Profitability

This table compares Yunhong Green CTI and ARKO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yunhong Green CTI	-3.76%	-7.78%	-3.07%
ARKO	0.24%	6.95%	0.52%

Institutional and Insider Ownership

2.1% of Yunhong Green CTI shares are held by institutional investors. Comparatively, 78.3% of ARKO shares are held by institutional investors. 44.8% of Yunhong Green CTI shares are held by company insiders. Comparatively, 22.5% of ARKO shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Yunhong Green CTI and ARKO”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yunhong Green CTI	$17.95 million	0.58	-$1.50 million	($0.31)	-12.18
ARKO	$8.73 billion	0.07	$20.84 million	$0.11	46.59

ARKO has higher revenue and earnings than Yunhong Green CTI. Yunhong Green CTI is trading at a lower price-to-earnings ratio than ARKO, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Yunhong Green CTI has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, ARKO has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Yunhong Green CTI and ARKO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yunhong Green CTI	1	0	0	0	1.00
ARKO	1	3	1	1	2.33

ARKO has a consensus target price of $7.13, suggesting a potential upside of 39.02%. Given ARKO’s stronger consensus rating and higher probable upside, analysts clearly believe ARKO is more favorable than Yunhong Green CTI.

Summary

ARKO beats Yunhong Green CTI on 13 of the 15 factors compared between the two stocks.

About Yunhong Green CTI

Yunhong Green CTI Ltd. develops, produces, distributes, and sells consumer products in the United States and internationally. It offers novelty products, including foil balloons; latex balloons under the Partyloons name; and toy balloon products, which include punch balls, water bombs, and balloons twisted into shapes, as well as other inflatable toy items. The company also offers packaging films and custom film products for food, and other commercial and packaging applications; and container products, as well as assembles and sells Candy Blossom product line. It primarily serves various retail outlets, including general merchandise stores, discount and drugstore chains, grocery chains, card and gift shops, party goods stores, and florists and balloon decorators. The company sells its products directly, as well as through a network of distributors and wholesalers, retail chains, and independent sales representatives. The company was formerly known as Yunhong CTI Ltd. and changed its name to Yunhong Green CTI Ltd. in August 2023. Yunhong Green CTI Ltd. was founded in 1983 and is headquartered in Lake Barrington, Illinois.

About ARKO

Arko Corp. operates convenience stores in the United States. It operates through Retail, Wholesale, Fleet Fueling, and GPMP segments. The Retail segment engages in the sale of fuel and merchandise to retail consumers. Its Wholesale segment supplies fuel to third-party dealers and consignment agents. The Fleet Fueling segment supplies fuel to proprietary and third-party cardlock, and issuance of proprietary fuel cards. Its GPMP segment supplies fuel to retail and wholesale segments. The company is based in Richmond, Virginia.