Natural Grocers by Vitamin Cottage (NYSE:NGVC) vs. Eurocash (OTCMKTS:EUSHY) Head to Head Comparison

Eurocash (OTCMKTS:EUSHY) and Natural Grocers by Vitamin Cottage (NYSE:NGVC) are both consumer defensive companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Insider & Institutional Ownership

0.2% of Eurocash shares are owned by institutional investors. Comparatively, 32.0% of Natural Grocers by Vitamin Cottage shares are owned by institutional investors. 59.4% of Natural Grocers by Vitamin Cottage shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Eurocash pays an annual dividend of $0.58 per share and has a dividend yield of 16.5%. Natural Grocers by Vitamin Cottage pays an annual dividend of $0.40 per share and has a dividend yield of 2.5%. Eurocash pays out 43.9% of its earnings in the form of a dividend. Natural Grocers by Vitamin Cottage pays out 34.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Eurocash and Natural Grocers by Vitamin Cottage, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eurocash	1	0	0	0	1.00
Natural Grocers by Vitamin Cottage	0	0	0	0	N/A

Profitability

This table compares Eurocash and Natural Grocers by Vitamin Cottage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eurocash	N/A	N/A	N/A
Natural Grocers by Vitamin Cottage	2.29%	16.69%	4.13%

Earnings and Valuation

This table compares Eurocash and Natural Grocers by Vitamin Cottage’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eurocash	N/A	N/A	N/A	$1.32	2.65
Natural Grocers by Vitamin Cottage	$1.14 billion	0.32	$23.24 million	$1.17	13.71

Natural Grocers by Vitamin Cottage has higher revenue and earnings than Eurocash. Eurocash is trading at a lower price-to-earnings ratio than Natural Grocers by Vitamin Cottage, indicating that it is currently the more affordable of the two stocks.

Summary

Natural Grocers by Vitamin Cottage beats Eurocash on 8 of the 10 factors compared between the two stocks.

About Eurocash

Eurocash S.A. engages in the wholesale distribution of food and other fast moving consumer goods (FMCG) in Poland. The company operates through Wholesale, Retail, and Projects segments. Its FMCG products include food products, soft drinks, alcoholic beverages, tobacco products, and household chemicals and cosmetics. The company markets its products to traditional retail stores, including small supermarkets, grocery stores, and specialized grocery stores; and kiosks, retail outlets, and convenience stores, restaurants, gas stations, hotel and café chains, and catering outlets. It operates a network of Cash & Carry warehouses; Delikatesy Centrum network supermarkets; Inmedio; and franchise and partner stores of Eurocash distribution. Eurocash S.A. was incorporated in 2014 and is based in Komorniki, Poland.

About Natural Grocers by Vitamin Cottage

Natural Grocers by Vitamin Cottage, Inc., together with its subsidiaries, retails natural and organic groceries, and dietary supplements in the United States. The company's stores offer natural and organic grocery products, such as organic produce; private label repackaged bulk products, including dried fruits, nuts, grains, granolas, teas, herbs, and spices, as well as peanut and almond butters; private label products comprising grocery staples, household products, bulk foods, and vitamins and dietary supplements, as well as organic eggs, organic flavored coffee, and organic mustard; dry, frozen, and canned groceries; meat and seafood products; dairy products, dairy substitutes, and eggs; prepared foods; bread and baked products; beverages; and beer, wine, and hard cider products. Its stores also provide name-brand supplements, as well as private label dietary supplements; body care products consisting of cosmetics, skin care, hair care, fragrance, and personal care products containing natural and organic ingredients; pet care and food products; books and handouts; household and general merchandise, including cleaning supplies, paper products, and dish and laundry soaps, as well as other common household products, such as diapers; and books and handouts. The company operates its retail stores under the Natural Grocers by Vitamin Cottage trademark, as well as Vitamin Cottage Natural Grocers and Health Hotline trademarks. The company also offers science-based nutrition education programs to help customers make informed health and nutrition choices. Natural Grocers by Vitamin Cottage, Inc. was founded in 1955 and is headquartered in Lakewood, Colorado.