Raia Drogasil (OTCMKTS:RADLY) vs. PriceSmart (NASDAQ:PSMT) Head to Head Review

Raia Drogasil (OTCMKTS:RADLY) and PriceSmart (NASDAQ:PSMT) are both mid-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Raia Drogasil	N/A	N/A	N/A
PriceSmart	2.82%	12.16%	6.67%

Insider & Institutional Ownership

80.5% of PriceSmart shares are held by institutional investors. 17.0% of PriceSmart shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Raia Drogasil pays an annual dividend of $0.04 per share and has a dividend yield of 1.1%. PriceSmart pays an annual dividend of $1.40 per share and has a dividend yield of 0.8%. PriceSmart pays out 26.9% of its earnings in the form of a dividend. PriceSmart has raised its dividend for 4 consecutive years.

Valuation & Earnings

This table compares Raia Drogasil and PriceSmart”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Raia Drogasil	N/A	N/A	N/A	N/A	N/A
PriceSmart	$5.69 billion	0.91	$147.89 million	$5.21	32.38

PriceSmart has higher revenue and earnings than Raia Drogasil.

Analyst Ratings

This is a breakdown of current recommendations for Raia Drogasil and PriceSmart, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Raia Drogasil	0	1	0	0	2.00
PriceSmart	0	0	2	0	3.00

PriceSmart has a consensus target price of $198.00, indicating a potential upside of 17.38%. Given PriceSmart’s stronger consensus rating and higher probable upside, analysts plainly believe PriceSmart is more favorable than Raia Drogasil.

Summary

PriceSmart beats Raia Drogasil on 10 of the 12 factors compared between the two stocks.

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.

About PriceSmart

PriceSmart, Inc. owns and operates U.S.-style membership shopping warehouse clubs in the United States, Central America, the Caribbean, and Colombia. The company provides basic and private label consumer products under the Member's Selection brand, including groceries, cleaning supplies, health and beauty aids, meat, produce, deli, seafood, and poultry. It offers electronics, large and small appliances, automotive, hardware, sporting goods, seasonal products, clothing, domestics, and home furnishing products. In addition, the company offers food and bakery services, as well as health services, such as optical, audiology, and pharmacy. Further, it operates an e-commerce platform for online ordering, curbside pickup, and delivery services. PriceSmart, Inc. was incorporated in 1994 and is headquartered in San Diego, California.