Critical Analysis: DAVIDsTEA (DTEA) vs. Companhia Brasileira de Distribuicao (CBD)
DAVIDsTEA (NASDAQ: DTEA) and Companhia Brasileira de Distribuicao (NYSE:CBD) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitabiliy, institutional ownership, dividends and analyst recommendations.
This is a summary of recent ratings and recommmendations for DAVIDsTEA and Companhia Brasileira de Distribuicao, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Companhia Brasileira de Distribuicao||0||3||1||0||2.25|
DAVIDsTEA currently has a consensus target price of $6.75, suggesting a potential upside of 15.38%. Given DAVIDsTEA’s higher probable upside, equities research analysts clearly believe DAVIDsTEA is more favorable than Companhia Brasileira de Distribuicao.
This table compares DAVIDsTEA and Companhia Brasileira de Distribuicao’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Companhia Brasileira de Distribuicao||N/A||3.17%||0.95%|
Valuation and Earnings
This table compares DAVIDsTEA and Companhia Brasileira de Distribuicao’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Companhia Brasileira de Distribuicao||$12.60 billion||0.41||$628.83 million||N/A||N/A|
Companhia Brasileira de Distribuicao has higher revenue and earnings than DAVIDsTEA.
Volatility and Risk
DAVIDsTEA has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Companhia Brasileira de Distribuicao has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500.
Insider and Institutional Ownership
19.8% of DAVIDsTEA shares are owned by institutional investors. Comparatively, 3.4% of Companhia Brasileira de Distribuicao shares are owned by institutional investors. 0.0% of Companhia Brasileira de Distribuicao shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Companhia Brasileira de Distribuicao beats DAVIDsTEA on 7 of the 10 factors compared between the two stocks.
DAVIDsTEA Company Profile
DAVIDsTEA Inc. is engaged in the retail and online sale of tea, tea accessories, and food and beverages in Canada and in the United States. The Company’s segments include Canada and the U.S. The Company is a branded retailer of specialty tea, offering approximately 150 loose-leaf teas, pre-packaged teas, tea sachets and tea-related gifts, accessories, and food and beverages primarily through approximately 190 DAVIDsTEA stores, which are operated by the Company, and its Website, davidstea.com. Additionally, the Company offers on-the-go tea beverages in its retail stores. The Company’s tea accessories include tea mugs, travel mugs, teacup sets, teapots, tea makers, kettles, infusers, filters, frothers, tins and spoons. The Company offers beverages range from the standard hot or iced tea to its Tea Lattes. The Company’s different flavors of loose-leaf tea span eight tea categories: white, green, oolong, black, pu’erh, mate, rooibos and herbal tea.
Companhia Brasileira de Distribuicao Company Profile
Companhia Brasileira de Distribuicao, directly or through its subsidiaries, is engaged in the retail of food, clothing, home appliances, electronics and other items through its chain of hypermarkets, supermarkets, specialized stores and department stores principally under the trade names Pao de Acucar, Minuto Pao de Acucar, Extra Hiper, Extra Super, Minimercado Extra, Assai an the neighborhood shopping mall brand Conviva. The Company’s segments include Retail, and Cash and carry segment. The Company’s Retail segment includes the banners Pao de Acucar, Minuto Pao de Acucar, Extra Hiper, Extra Supermercado, Minimercado Extra, Posto Extra, Drogaria Extra and GPA Malls & Properties. Its Cash & Carry segment includes the brand Assai. The Company is engaged in operations of retail stores located in approximately 20 states and the Federal District of Brazil.
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