Reviewing Raia Drogasil (OTCMKTS:RADLY) & US Foods (NYSE:USFD)

Raia Drogasil (OTCMKTS:RADLY) and US Foods (NYSE:USFD) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Raia Drogasil	0	1	1	0	2.50
US Foods	0	4	10	1	2.80

Raia Drogasil presently has a consensus target price of $5.20, suggesting a potential upside of 94.39%. US Foods has a consensus target price of $115.31, suggesting a potential upside of 5.04%. Given Raia Drogasil’s higher possible upside, research analysts clearly believe Raia Drogasil is more favorable than US Foods.

Valuation and Earnings

This table compares Raia Drogasil and US Foods”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	0.44	$232.27 million	$0.15	17.83
US Foods	$39.42 billion	0.60	$676.00 million	$3.58	30.66

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

Profitability

This table compares Raia Drogasil and US Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Raia Drogasil	2.89%	20.61%	6.02%
US Foods	1.97%	21.37%	6.49%

Insider and Institutional Ownership

98.8% of US Foods shares are held by institutional investors. 0.7% of US Foods shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

US Foods beats Raia Drogasil on 12 of the 14 factors compared between the two stocks.

About Raia Drogasil

Raia Drogasil, now known as RD Saúde, is a Brazilian health and pharmacy retail company formed in 2011 through the merger of Droga Raia and Drogasil. It operates pharmacy stores under the Raia and Drogasil brands. The company sells prescription and over-the-counter medicines, personal care and beauty products, and other health and wellness goods. It serves customers across Brazil through its retail locations and digital channels, including online ordering and delivery. In addition to pharmacy retail, RD Saúde provides health-related services through its stores and digital platforms.

About US Foods

US Foods Holding Corp. is a foodservice distributor that supplies restaurants and other foodservice businesses across the United States. Its customers include independent restaurants, healthcare and senior-care facilities, hotels, educational institutions, and government organizations. The company distributes a broad range of products, including fresh and frozen foods, meat, seafood, produce, dairy, beverages, and nonfood supplies. It also offers services and digital tools intended to help customers manage menus, purchasing, and kitchen operations.