Comparing Eurocash (OTCMKTS:EUSHY) & Village Super Market (NASDAQ:VLGEA)

Eurocash (OTCMKTS:EUSHY) and Village Super Market (NASDAQ:VLGEA) are both consumer defensive companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for Eurocash and Village Super Market, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eurocash	1	0	0	0	1.00
Village Super Market	0	0	0	0	N/A

Profitability

This table compares Eurocash and Village Super Market’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
Village Super Market	2.39%	12.53%	5.37%

Dividends

Eurocash pays an annual dividend of $0.58 per share and has a dividend yield of 15.6%. Village Super Market pays an annual dividend of $1.00 per share and has a dividend yield of 3.5%. Eurocash pays out 43.9% of its earnings in the form of a dividend. Village Super Market pays out 28.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation & Earnings

This table compares Eurocash and Village Super Market’s gross 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	2.81
Village Super Market	$2.17 billion	0.20	$49.72 million	$3.53	8.10

Village Super Market has higher revenue and earnings than Eurocash. Eurocash is trading at a lower price-to-earnings ratio than Village Super Market, 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, 39.0% of Village Super Market shares are held by institutional investors. 64.4% of Village Super Market shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Village Super Market beats Eurocash on 9 of the 10 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 Village Super Market

Village Super Market, Inc. operates a chain of supermarkets in the United States. The company offers grocery, meat, produce, dairy, deli, seafood, prepared foods, and bakery and frozen foods. It also provides non-food products, including health and beauty care, general merchandise, liquor, and pharmacy products through retail and online stores. Village Super Market, Inc. was founded in 1937 and is based in Springfield, New Jersey.