Raia Drogasil (RADLY) versus Its Rivals Critical Survey

Raia Drogasil (OTCMKTS:RADLY) is one of 150 public companies in the “Consumer Staples Distribution & Retail” industry, but how does it compare to its peers? We will compare Raia Drogasil to related businesses based on the strength of its analyst recommendations, profitability, earnings, risk, dividends, valuation and institutional ownership.

Profitability

This table compares Raia Drogasil and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Raia Drogasil	2.97%	18.20%	5.32%
Raia Drogasil Competitors	-25.25%	1.85%	2.34%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Raia Drogasil and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Raia Drogasil	0	1	0	0	2.00
Raia Drogasil Competitors	2228	8214	9978	449	2.41

As a group, “Consumer Staples Distribution & Retail” companies have a potential upside of 63.20%. Given Raia Drogasil’s peers stronger consensus rating and higher probable upside, analysts clearly believe Raia Drogasil has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Raia Drogasil and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Raia Drogasil	$7.93 billion	$232.27 million	68.62
Raia Drogasil Competitors	$34.26 billion	$835.93 million	18.89

Raia Drogasil’s peers have higher revenue and earnings than Raia Drogasil. Raia Drogasil is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Raia Drogasil pays an annual dividend of $0.04 per share and has a dividend yield of 1.2%. Raia Drogasil pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Consumer Staples Distribution & Retail” companies pay a dividend yield of 4.1% and pay out 36.7% of their earnings in the form of a dividend. Raia Drogasil lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

45.0% of shares of all “Consumer Staples Distribution & Retail” companies are held by institutional investors. 19.7% of shares of all “Consumer Staples Distribution & Retail” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Raia Drogasil peers beat Raia Drogasil on 10 of the 14 factors compared.

Raia Drogasil Company Profile

Raia Drogasil S.A. engages in the retail sale of medicines, perfumery, personal care and beauty products, cosmetics, dermocosmetics, and specialty medicines in Brazil. It also markets its goods through telesales and call centers in the states of São Paulo, Tocantins, and Pernambuco. The company was founded in 1905 and is headquartered in São Paulo, Brazil.