Analyzing Companhia Brasileira De Distribuicao (NYSE:CBD) and Eurocash (OTCMKTS:EUSHY)

Companhia Brasileira De Distribuicao (NYSE:CBD) and Eurocash (OTCMKTS:EUSHY) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Companhia Brasileira De Distribuicao and Eurocash, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Companhia Brasileira De Distribuicao	0	0	0	0	N/A
Eurocash	1	0	0	0	1.00

Insider and Institutional Ownership

2.4% of Companhia Brasileira De Distribuicao shares are held by institutional investors. Comparatively, 0.2% of Eurocash shares are held by institutional investors. 0.0% of Companhia Brasileira De Distribuicao shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Companhia Brasileira De Distribuicao and Eurocash’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Companhia Brasileira De Distribuicao	-11.83%	1.68%	0.47%
Eurocash	N/A	N/A	N/A

Earnings & Valuation

This table compares Companhia Brasileira De Distribuicao and Eurocash’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Companhia Brasileira De Distribuicao	$3.86 billion	0.00	-$454.88 million	($0.13)	N/A
Eurocash	N/A	N/A	N/A	$1.32	2.65

Eurocash has lower revenue, but higher earnings than Companhia Brasileira De Distribuicao. Companhia Brasileira De Distribuicao is trading at a lower price-to-earnings ratio than Eurocash, indicating that it is currently the more affordable of the two stocks.

Summary

Companhia Brasileira De Distribuicao beats Eurocash on 5 of the 8 factors compared between the two stocks.

About Companhia Brasileira De Distribuicao

Companhia Brasileira De Distribuicao engages in the operation of supermarkets, specialized stores, and department stores in Brazil. It sells food products, including non-perishables, beverages, fruits, vegetables, meat, bread, cold cuts, and dairy products; and non-food products, such as cleaning supplies, disposable products, personal care products, and pet supplies under its private label and third-party brands. The company is also involved in the provision of ready-to-eat meals; rental of commercial spaces; and e-commerce sales. It operates its supermarkets under Pão de Açúcar, Mercado Extra, and Compre Bem banners; proximity and specialized stores through Mini Extra, Minuto Pão de Açúcar, Pão de Açúcar Adega, and Aliados Minimercado banners; and gas stations through the Pão de Açúcar, Mercado Extra, and Compre Bem banners, as well as sells its products through its websites. The company was founded in 1948 and is headquartered in São Paulo, Brazil.

About Eurocash

Eurocash S.A. engages in the wholesale distribution of food and other fast moving consumer goods (FMCG) in Poland. The company operates through Wholesale, Retail, and Projects segments. Its FMCG products include food products, soft drinks, alcoholic beverages, tobacco products, and household chemicals and cosmetics. The company markets its products to traditional retail stores, including small supermarkets, grocery stores, and specialized grocery stores; and kiosks, retail outlets, and convenience stores, restaurants, gas stations, hotel and café chains, and catering outlets. It operates a network of Cash & Carry warehouses; Delikatesy Centrum network supermarkets; Inmedio; and franchise and partner stores of Eurocash distribution. Eurocash S.A. was incorporated in 2014 and is based in Komorniki, Poland.