hhgregg (NYSE: HGG) and Cencosud SA (NYSE:CNCO) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitabiliy, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider and Institutional Ownership

63.1% of hhgregg shares are owned by institutional investors. Comparatively, 0.5% of Cencosud SA shares are owned by institutional investors. 53.1% of hhgregg shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

hhgregg has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500. Comparatively, Cencosud SA has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for hhgregg and Cencosud SA, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
hhgregg 0 0 0 0 N/A
Cencosud SA 1 1 1 0 2.00

Dividends

Cencosud SA pays an annual dividend of $0.15 per share and has a dividend yield of 1.9%. hhgregg does not pay a dividend. Cencosud SA pays out 28.3% of its earnings in the form of a dividend. Cencosud SA has raised its dividend for 2 consecutive years.

Profitability

This table compares hhgregg and Cencosud SA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
hhgregg N/A N/A N/A
Cencosud SA 3.26% 8.31% 3.31%

Valuation & Earnings

This table compares hhgregg and Cencosud SA’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
hhgregg N/A N/A N/A ($3.35) -0.07
Cencosud SA N/A N/A N/A $0.53 15.19

hhgregg is trading at a lower price-to-earnings ratio than Cencosud SA, indicating that it is currently the more affordable of the two stocks.

Summary

Cencosud SA beats hhgregg on 7 of the 11 factors compared between the two stocks.

hhgregg Company Profile

hhgregg, Inc. (hhgregg) is an appliance, electronics and furniture retailer. The Company operates as a multi-regional retailer with approximately 230 brick-and-mortar stores in 20 states that also offer global and local brands across the nation through hhgregg.com. It also sells a suite of services, including third-party premium service plans (PSPs), third-party in-home service and repair of its products, delivery and installation, and in-home repair and maintenance. The Company sells a range of appliances, audio products, computers, consumer electronics, mattresses and tablets. The Company sells appliances, including washers and dryers, refrigerators, cooking ranges, dishwashers, freezers and air conditioners; consumer electronics, including televisions, Blu-Ray and digital versatile disc (DVD) players, audio and small electronics; computers and tablets, including computers, computer accessories and tablets, and home products, including bedding and home furniture.

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