Raia Drogasil (OTCMKTS:RADLY) vs. George Weston (OTCMKTS:WNGRF) Head to Head Survey

Raia Drogasil (OTCMKTS:RADLY) and George Weston (OTCMKTS:WNGRF) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Profitability

This table compares Raia Drogasil and George Weston’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Raia Drogasil	2.97%	18.20%	5.32%
George Weston	1.54%	14.12%	3.38%

Dividends

Raia Drogasil pays an annual dividend of $0.04 per share and has a dividend yield of 0.9%. George Weston pays an annual dividend of $0.93 per share and has a dividend yield of 1.3%. Raia Drogasil pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. George Weston pays out 50.0% of its earnings in the form of a dividend. George Weston is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Raia Drogasil and George Weston”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Raia Drogasil	$7.93 billion	0.71	$232.27 million	$0.05	85.40
George Weston	$46.17 billion	0.57	$817.33 million	$1.86	37.75

George Weston has higher revenue and earnings than Raia Drogasil. George Weston is trading at a lower price-to-earnings ratio than Raia Drogasil, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for Raia Drogasil and George Weston, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Raia Drogasil	0	1	0	0	2.00
George Weston	0	1	4	0	2.80

Insider and Institutional Ownership

0.0% of George Weston shares are held by institutional investors. 53.6% of George Weston shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

George Weston beats Raia Drogasil on 9 of the 14 factors compared between the two stocks.

About Raia Drogasil

Raia Drogasil S.A. engages in the retail sale of medicines, perfumery, personal care and beauty products, cosmetics, dermocosmetics, and specialty medicines in Brazil. It also markets its goods through telesales and call centers in the states of São Paulo, Tocantins, and Pernambuco. The company was founded in 1905 and is headquartered in São Paulo, Brazil.

About George Weston

George Weston Limited provides food and drug retailing, and financial services in Canada. The company operates through two segments, Loblaw Companies Limited (Loblaw) and Choice Properties Real Estate Investment Trust (Choice Properties). The Loblaw segment provides grocery, pharmacy and healthcare services, health and beauty products, apparel, general merchandise, and financial services. This segment also offers credit card and other banking services, insurance brokerage services, guaranteed investment certificates, and wireless mobile products and services. The Choice Properties segment owns, operates, manages, and develops retail commercial and residential properties, leased to necessity-based tenants, industrial, and mixed-use and residential assets. It markets its products under the Shoppers Drug Mart, Joe Fresh, President’s Choice Bank, no name, Farmer’s Market, T&T, Life Brand, and PC Optimum brands. The company was founded in 1882 and is based in Toronto, Canada. George Weston Limited operates as a subsidiary of Wittington Investments, Limited.