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

Risk and Volatility

SuperValu has a beta of 2.11, indicating that its stock price is 111% more volatile than the S&P 500. Comparatively, Companhia Brasileira de Distribuicao has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.

Profitability

This table compares SuperValu and Companhia Brasileira de Distribuicao’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SuperValu 4.46% 220.54% 2.55%
Companhia Brasileira de Distribuicao 0.27% 5.46% 1.65%

Institutional and Insider Ownership

3.5% of Companhia Brasileira de Distribuicao shares are owned by institutional investors. 1.7% of SuperValu shares are owned by company insiders. Comparatively, 0.0% of Companhia Brasileira de Distribuicao shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares SuperValu and Companhia Brasileira de Distribuicao’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SuperValu $12.72 billion 0.06 $461.00 million $16.03 1.25
Companhia Brasileira de Distribuicao $13.58 billion 0.47 $776.33 million $0.14 171.32

Companhia Brasileira de Distribuicao has higher revenue and earnings than SuperValu. SuperValu is trading at a lower price-to-earnings ratio than Companhia Brasileira de Distribuicao, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for SuperValu and Companhia Brasileira de Distribuicao, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SuperValu 0 4 2 0 2.33
Companhia Brasileira de Distribuicao 0 3 1 0 2.25

SuperValu presently has a consensus price target of $33.60, suggesting a potential upside of 67.54%. Given SuperValu’s stronger consensus rating and higher probable upside, equities research analysts clearly believe SuperValu is more favorable than Companhia Brasileira de Distribuicao.

Summary

SuperValu beats Companhia Brasileira de Distribuicao on 9 of the 14 factors compared between the two stocks.

About SuperValu

Supervalu Inc. is a wholesale distributor to independent retail customers across the United States. The Company’s segments include Wholesale and Retail. The Company offers a range of advertised brand name and private-label products, including grocery (both perishable and nonperishable), general merchandise and home, health and beauty care, and pharmacy, which are sold through Company-operated and licensed Retail stores to shoppers and through its Wholesale segment to independent retail customers. The Company’s Wholesale segment provides wholesale distribution of products to independent retail customers. Wholesale is organized and operated through two geographic regions: East and West. As of February 27, 2016, the Company conducted its Retail operations through a total of 200 stores primarily organized under five regionally-based retail banners of Cub Foods, Shoppers Food & Pharmacy, Shop ‘n Save, Farm Fresh and Hornbacher’s, as well as two Rainbow and two County Market stores.

About Companhia Brasileira de Distribuicao

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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