Contrasting Grocery Outlet (NASDAQ:GO) & Eurocash (OTCMKTS:EUSHY)

Eurocash (OTCMKTS:EUSHY) and Grocery Outlet (NASDAQ:GO) are both consumer defensive companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Valuation & Earnings

This table compares Eurocash and Grocery Outlet”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eurocash	N/A	N/A	N/A	$1.32	2.65
Grocery Outlet	$4.26 billion	0.43	$79.44 million	$0.51	36.80

Grocery Outlet has higher revenue and earnings than Eurocash. Eurocash is trading at a lower price-to-earnings ratio than Grocery Outlet, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

0.2% of Eurocash shares are held by institutional investors. Comparatively, 99.9% of Grocery Outlet shares are held by institutional investors. 4.5% of Grocery Outlet shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Eurocash and Grocery Outlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eurocash	N/A	N/A	N/A
Grocery Outlet	1.20%	5.25%	2.11%

Analyst Ratings

This is a summary of current ratings and recommmendations for Eurocash and Grocery Outlet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eurocash	0	0	0	0	0.00
Grocery Outlet	1	8	2	1	2.25

Grocery Outlet has a consensus price target of $18.00, indicating a potential downside of 4.10%. Given Grocery Outlet’s stronger consensus rating and higher possible upside, analysts clearly believe Grocery Outlet is more favorable than Eurocash.

Summary

Grocery Outlet beats Eurocash on 11 of the 12 factors compared between the two stocks.

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.

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products. The company was founded in 1946 and is headquartered in Emeryville, California.