Village Super Market (NASDAQ:VLGEA) versus Raia Drogasil (OTCMKTS:RADLY) Head to Head Review

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

Dividends

Raia Drogasil pays an annual dividend of $0.03 per share and has a dividend yield of 0.8%. Village Super Market pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. Raia Drogasil pays out 60.0% of its earnings in the form of a dividend. Village Super Market pays out 27.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Village Super Market is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and recommmendations for Raia Drogasil and Village Super Market, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Raia Drogasil	0	1	0	0	2.00
Village Super Market	0	0	1	0	3.00

Profitability

This table compares Raia Drogasil and Village Super Market’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%
Village Super Market	2.27%	10.80%	5.40%

Valuation and Earnings

This table compares Raia Drogasil and Village Super Market”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Raia Drogasil	$7.93 billion	0.60	$232.27 million	$0.05	72.80
Village Super Market	$2.32 billion	0.29	$56.38 million	$3.68	12.25

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

Insider and Institutional Ownership

39.0% of Village Super Market shares are held by institutional investors. 59.1% of Village Super Market shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Village Super Market beats Raia Drogasil on 8 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 Village Super Market

Village Super Market, Inc. operates a chain of supermarkets in the United States. The company offers grocery, meat, produce, dairy, deli, seafood, prepared foods, and bakery and frozen foods. It also provides non-food products, including health and beauty care, general merchandise, liquor, and pharmacy products through retail and online stores. Village Super Market, Inc. was founded in 1937 and is based in Springfield, New Jersey.