Village Super Market (NASDAQ:VLGEA) and Raia Drogasil (OTCMKTS:RADLY) Head-To-Head Comparison

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

Dividends

Raia Drogasil pays an annual dividend of $0.04 per share and has a dividend yield of 1.0%. Village Super Market pays an annual dividend of $1.00 per share and has a dividend yield of 2.3%. Raia Drogasil pays out 26.7% of its earnings in the form of a dividend. Village Super Market pays out 28.2% 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.

Insider and Institutional Ownership

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

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	2.99%	20.12%	5.88%
Village Super Market	2.18%	10.23%	5.17%

Analyst Ratings

This is a summary of recent recommendations and price targets for Raia Drogasil and Village Super Market, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Raia Drogasil	0	1	1	0	2.50
Village Super Market	0	0	1	0	3.00

Raia Drogasil currently has a consensus price target of $5.20, indicating a potential upside of 25.91%. Given Raia Drogasil’s higher possible upside, analysts clearly believe Raia Drogasil is more favorable than Village Super Market.

Valuation & 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	$7.92 billion	0.69	$232.27 million	$0.15	27.53
Village Super Market	$2.41 billion	0.27	$52.46 million	$3.55	12.23

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.

Summary

Raia Drogasil beats Village Super Market 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 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.