Kroger Company (The) (NYSE: KR) and Companhia Brasileira de Distribuicao (NYSE:CBD) are both mid-cap retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Kroger Company (The) pays an annual dividend of $0.50 per share and has a dividend yield of 2.4%. Companhia Brasileira de Distribuicao does not pay a dividend. Kroger Company (The) pays out 30.3% of its earnings in the form of a dividend. Kroger Company (The) has raised its dividend for 8 consecutive years.
Institutional and Insider Ownership
75.8% of Kroger Company (The) shares are held by institutional investors. Comparatively, 3.5% of Companhia Brasileira de Distribuicao shares are held by institutional investors. 0.9% of Kroger Company (The) shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Kroger Company (The) has a beta of 0.76, indicating that its stock price is 24% less 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.
This table compares Kroger Company (The) and Companhia Brasileira de Distribuicao’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kroger Company (The)||1.32%||28.04%||4.94%|
|Companhia Brasileira de Distribuicao||0.27%||5.46%||1.65%|
Earnings & Valuation
This table compares Kroger Company (The) and Companhia Brasileira de Distribuicao’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kroger Company (The)||$118.05 billion||0.15||$5.56 billion||$1.65||12.41|
|Companhia Brasileira de Distribuicao||$13.52 billion||0.48||$772.66 million||$0.14||173.14|
Kroger Company (The) has higher revenue and earnings than Companhia Brasileira de Distribuicao. Kroger Company (The) 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.
This is a breakdown of recent ratings and recommmendations for Kroger Company (The) and Companhia Brasileira de Distribuicao, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kroger Company (The)||0||16||8||0||2.33|
|Companhia Brasileira de Distribuicao||0||3||1||0||2.25|
Kroger Company (The) currently has a consensus price target of $29.57, indicating a potential upside of 44.36%. Given Kroger Company (The)’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Kroger Company (The) is more favorable than Companhia Brasileira de Distribuicao.
Kroger Company (The) beats Companhia Brasileira de Distribuicao on 13 of the 17 factors compared between the two stocks.
About Kroger Company (The)
The Kroger Co. (Kroger) manufactures and processes food for sale in its supermarkets. The Company operates supermarkets, multi-department stores, jewelry stores and convenience stores throughout the United States. As of January 28, 2017, it had operated approximately 4,000 owned or leased supermarkets, convenience stores, fine jewelry stores, distribution warehouses and food production plants through divisions, subsidiaries or affiliates. These facilities are located throughout the United States. As of January 28, 2017, Kroger operated, either directly or through its subsidiaries, 2,796 supermarkets under a range of local banner names, of which 2,255 had pharmacies and 1,445 had fuel centers. As of January 28, 2017, the Company offered ClickList and Harris Teeter ExpressLane, personalized, order online, pick up at the store services at 637 of its supermarkets. P$$T, Check This Out and Heritage Farm are the three brands. Its other brands include Simple Truth and Simple Truth Organic.
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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