Critical Contrast: Sendas Distribuidora (NYSE:ASAI) vs. J Sainsbury (OTCMKTS:JSNSF)

Sendas Distribuidora (NYSE:ASAI) and J Sainsbury (OTCMKTS:JSNSF) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sendas Distribuidora	1.07%	16.78%	1.75%
J Sainsbury	N/A	N/A	N/A

Earnings & Valuation

This table compares Sendas Distribuidora and J Sainsbury’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sendas Distribuidora	$13.32 billion	0.27	$142.21 million	$0.53	25.06
J Sainsbury	N/A	N/A	N/A	$0.02	205.21

Sendas Distribuidora has higher revenue and earnings than J Sainsbury. Sendas Distribuidora is trading at a lower price-to-earnings ratio than J Sainsbury, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

8.8% of Sendas Distribuidora shares are held by institutional investors. Comparatively, 23.0% of J Sainsbury shares are held by institutional investors. 0.4% of Sendas Distribuidora shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Sendas Distribuidora and J Sainsbury, as reported by MarketBeat.com.

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

Dividends

Sendas Distribuidora pays an annual dividend of $0.05 per share and has a dividend yield of 0.4%. J Sainsbury pays an annual dividend of $0.17 per share and has a dividend yield of 5.2%. Sendas Distribuidora pays out 9.4% of its earnings in the form of a dividend. J Sainsbury pays out 1,061.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Sendas Distribuidora beats J Sainsbury on 8 of the 11 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 J Sainsbury

J Sainsbury plc, together with its subsidiaries, engages in the food, general merchandise and clothing retailing, and financial services activities in the United Kingdom and the Republic of Ireland. It operates through three segments: Retail Food, Retail General Merchandise and Clothing, and Financial Services. The company operates various store formats, including convenience stores and supermarkets. It is also involved in the online grocery and general merchandise operations. In addition, it offers financial services, such as credit cards, scorecards, and personal loans; and home, car, pet, travel, and life insurance products. J Sainsbury plc was founded in 1869 and is headquartered in London, the United Kingdom.