Head to Head Review: Eurocash (OTCMKTS:EUSHY) and Companhia Brasileira De Distribuicao (NYSE:CBD)

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

Profitability

This table compares Eurocash and Companhia Brasileira De Distribuicao’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
Companhia Brasileira De Distribuicao	-11.83%	1.68%	0.47%

Institutional & Insider Ownership

0.2% of Eurocash shares are held by institutional investors. Comparatively, 2.4% of Companhia Brasileira De Distribuicao shares are held by institutional investors. 0.0% of Companhia Brasileira De Distribuicao shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Eurocash and Companhia Brasileira De Distribuicao’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	2.65
Companhia Brasileira De Distribuicao	$3.86 billion	0.03	-$454.88 million	($0.13)	-3.42

Eurocash has higher earnings, but lower revenue 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.

Analyst Recommendations

This is a summary of recent recommendations for Eurocash and Companhia Brasileira De Distribuicao, as reported by MarketBeat.

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

Summary

Companhia Brasileira De Distribuicao beats Eurocash on 5 of the 8 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 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.