Critical Comparison: Raia Drogasil (RADLY) vs. Its Competitors

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

Valuation & Earnings

This table compares Raia Drogasil and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Raia Drogasil	$7.92 billion	$232.27 million	28.47
Raia Drogasil Competitors	$34.28 billion	$835.88 million	15.83

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

Analyst Ratings

This is a summary of current recommendations for Raia Drogasil and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Raia Drogasil	0	1	1	0	2.50
Raia Drogasil Competitors	2239	8232	10006	453	2.41

Raia Drogasil currently has a consensus target price of $5.20, suggesting a potential upside of 21.78%. As a group, “Consumer Staples Distribution & Retail” companies have a potential upside of 61.10%. Given Raia Drogasil’s rivals higher probable upside, analysts plainly believe Raia Drogasil has less favorable growth aspects than its rivals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Raia Drogasil	2.99%	20.12%	5.88%
Raia Drogasil Competitors	-25.67%	1.91%	2.62%

Dividends

Raia Drogasil pays an annual dividend of $0.04 per share and has a dividend yield of 0.9%. Raia Drogasil pays out 26.7% of its earnings in the form of a dividend. As a group, “Consumer Staples Distribution & Retail” companies pay a dividend yield of 3.9% and pay out 36.7% of their earnings in the form of a dividend.

Insider & Institutional Ownership

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

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.