Critical Review: China Resources Beer (CRHKY) vs. Companhia Brasileira de Distribuicao (CBD)

China Resources Beer (OTCMKTS: CRHKY) and Companhia Brasileira de Distribuicao (NYSE:CBD) are both multi-sector conglomerates companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Analyst Ratings

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This is a summary of current ratings and recommmendations for China Resources Beer and Companhia Brasileira de Distribuicao, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Resources Beer 0 0 0 0 N/A
Companhia Brasileira de Distribuicao 0 0 3 0 3.00

Dividends

China Resources Beer pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. Companhia Brasileira de Distribuicao pays an annual dividend of $0.36 per share and has a dividend yield of 1.7%. Companhia Brasileira de Distribuicao pays out 78.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

2.9% of Companhia Brasileira de Distribuicao shares are held by institutional investors. 0.0% of Companhia Brasileira de Distribuicao shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

China Resources Beer has a beta of -0.07, indicating that its share price is 107% less volatile than the S&P 500. Comparatively, Companhia Brasileira de Distribuicao has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500.

Valuation & Earnings

This table compares China Resources Beer and Companhia Brasileira de Distribuicao’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Resources Beer $4.32 billion 3.52 $94.66 million N/A N/A
Companhia Brasileira de Distribuicao $13.99 billion 0.40 $193.87 million $0.46 45.26

Companhia Brasileira de Distribuicao has higher revenue and earnings than China Resources Beer.

Profitability

This table compares China Resources Beer and Companhia Brasileira de Distribuicao’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Resources Beer N/A N/A N/A
Companhia Brasileira de Distribuicao 1.38% 6.00% 1.82%

Summary

Companhia Brasileira de Distribuicao beats China Resources Beer on 10 of the 12 factors compared between the two stocks.

China Resources Beer Company Profile

China Resources Beer (Holdings) Company Limited, an investment holding company, manufactures, sells, and distributes beer products under the Snow brand in Hong Kong, Mainland China, and internationally. As of December 31, 2016, it operated 98 breweries in 25 provinces, directly administered municipalities, and autonomous regions in Mainland China. It is also involved in financing business. The company was formerly known as China Resources Enterprise, Limited and changed its name to China Resources Beer (Holdings) Company Limited in October 2015. The company is based in Wanchai, Hong Kong and considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. China Resources Beer (Holdings) Company Limited is a subsidiary of China Resources (Holdings) Company Limited.

Companhia Brasileira de Distribuicao Company Profile

Companhia Brasileira de Distribuição engages in the retail of food, clothing, home appliances, and other products through its chain of hypermarkets and supermarkets. It operates though the Food Retail; and Cash and Carry segments. The Food Retail segment sells food and non-food products to individual consumers. The Cash and Carry segment retails food and some non-food products to resellers, intermediate consumers, and retail customers through the Assaí banner. The company was founded in 1948 and is headquartered in Sao Paulo, Brazil.

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