Critical Analysis: Sendas Distribuidora (NYSE:ASAI) vs. Tesco (OTCMKTS:TSCDD)

Sendas Distribuidora (NYSE:ASAI) and Tesco (OTCMKTS:TSCDD) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.

Risk & Volatility

Sendas Distribuidora has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Tesco has a beta of 0.68, indicating that its stock price is 32% 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 0.6%. Tesco pays an annual dividend of $0.32 per share and has a dividend yield of 3.1%. Sendas Distribuidora pays out 13.3% of its earnings in the form of a dividend.

Profitability

This table compares Sendas Distribuidora and Tesco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sendas Distribuidora	1.27%	19.80%	2.01%
Tesco	N/A	N/A	N/A

Valuation and Earnings

This table compares Sendas Distribuidora and Tesco’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sendas Distribuidora	$10.56 billion	0.33	$236.31 million	$0.60	21.42
Tesco	N/A	N/A	N/A	N/A	N/A

Sendas Distribuidora has higher revenue and earnings than Tesco.

Institutional and Insider Ownership

0.2% of Tesco shares are held by institutional investors. 0.4% of Sendas Distribuidora shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for Sendas Distribuidora and Tesco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sendas Distribuidora	0	0	1	0	3.00
Tesco	0	0	0	0	N/A

Summary

Sendas Distribuidora beats Tesco on 7 of the 10 factors compared between the two stocks.

About Sendas Distribuidora

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

About Tesco

Tesco PLC, together with its subsidiaries, operates as a grocery retailer. The company operates through convenience and hypermarket store formats, as well as engages in the wholesale business. It also provides retail banking and insurance services. The company operates in the United Kingdom, the Republic of Ireland, the Czech Republic, Hungary, Poland, Slovakia, Malaysia, and Thailand. The company serves its customers through stores, as well as online. Tesco PLC was founded in 1919 and is headquartered in Welwyn Garden City, the United Kingdom.