Head-To-Head Survey: Raia Drogasil (OTCMKTS:RADLY) vs. BJ’s Wholesale Club (NYSE:BJ)

BJ’s Wholesale Club (NYSE:BJ) and Raia Drogasil (OTCMKTS:RADLY) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Insider & Institutional Ownership

98.6% of BJ’s Wholesale Club shares are owned by institutional investors. 1.1% of BJ’s Wholesale Club shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares BJ’s Wholesale Club and Raia Drogasil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BJ’s Wholesale Club	2.62%	27.40%	7.69%
Raia Drogasil	2.97%	18.20%	5.32%

Earnings and Valuation

This table compares BJ’s Wholesale Club and Raia Drogasil”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BJ’s Wholesale Club	$22.81 billion	0.55	$578.38 million	$4.57	21.60
Raia Drogasil	$7.92 billion	0.71	$232.27 million	$0.05	85.00

BJ’s Wholesale Club has higher revenue and earnings than Raia Drogasil. BJ’s Wholesale Club is trading at a lower price-to-earnings ratio than Raia Drogasil, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for BJ’s Wholesale Club and Raia Drogasil, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BJ’s Wholesale Club	1	9	10	0	2.45
Raia Drogasil	0	1	0	0	2.00

BJ’s Wholesale Club presently has a consensus target price of $106.06, suggesting a potential upside of 7.42%. Given BJ’s Wholesale Club’s stronger consensus rating and higher probable upside, equities analysts plainly believe BJ’s Wholesale Club is more favorable than Raia Drogasil.

Summary

BJ’s Wholesale Club beats Raia Drogasil on 10 of the 13 factors compared between the two stocks.

About BJ’s Wholesale Club

BJ’s Wholesale Club Holdings, Inc. engages in the operation of membership warehouse clubs. Its product categories include grocery, household and pet, television and electronics, furniture, computer and tablets, patio and outdoor living, lawn and garden, baby and kids, toys, home, health and beauty, appliances, and jewelry. The company was founded in 1984 and is headquartered in Marlborough, MA.

About Raia Drogasil

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.