Sendas Distribuidora (ASAI) versus The Competition Critical Analysis

Sendas Distribuidora (NYSE:ASAI – Get Rating) is one of 51 publicly-traded companies in the “Grocery stores” industry, but how does it weigh in compared to its competitors? We will compare Sendas Distribuidora to similar businesses based on the strength of its dividends, institutional ownership, earnings, risk, analyst recommendations, profitability and valuation.

Volatility & Risk

Sendas Distribuidora has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Sendas Distribuidora’s competitors have a beta of -2.58, indicating that their average stock price is 358% less volatile than the S&P 500.

Dividends

Sendas Distribuidora pays an annual dividend of $0.08 per share and has a dividend yield of 0.7%. Sendas Distribuidora pays out 10.3% of its earnings in the form of a dividend. As a group, “Grocery stores” companies pay a dividend yield of 3.4% and pay out 58.1% of their earnings in the form of a dividend.

Profitability

This table compares Sendas Distribuidora and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sendas Distribuidora	1.86%	29.13%	2.88%
Sendas Distribuidora Competitors	1.74%	15.72%	4.51%

Insider & Institutional Ownership

4.5% of Sendas Distribuidora shares are owned by institutional investors. Comparatively, 46.1% of shares of all “Grocery stores” companies are owned by institutional investors. 0.4% of Sendas Distribuidora shares are owned by company insiders. Comparatively, 21.1% of shares of all “Grocery stores” companies are owned 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Sendas Distribuidora and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sendas Distribuidora	0	1	0	0	2.00
Sendas Distribuidora Competitors	1096	2660	2841	112	2.29

As a group, “Grocery stores” companies have a potential upside of 16.22%. Given Sendas Distribuidora’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Sendas Distribuidora has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Sendas Distribuidora and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sendas Distribuidora	$10.56 billion	$236.31 million	15.06
Sendas Distribuidora Competitors	$29.37 billion	$704.32 million	222.82

Sendas Distribuidora’s competitors have higher revenue and earnings than Sendas Distribuidora. Sendas Distribuidora is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Sendas Distribuidora competitors beat Sendas Distribuidora on 11 of the 15 factors compared.

About Sendas Distribuidora

(Get Rating)

Sendas Distribuidora S.A. engages in the retail and wholesale sale of food products, bazaar items, and other products in Brazil. As of March 31, 2022, the company operated 216 stores under the Assaí banner, as well as 13 distribution centers. It serves restaurants, pizzerias, snack bars, schools, small businesses, religious institutions, hospitals, hotels, grocery stores, neighborhood supermarkets, and individuals. The company sells its products through brick-and-mortar stores, as well as through telesales. Sendas Distribuidora S.A. was founded in 1974 and is headquartered in Rio de Janeiro, Brazil.