Eurocash (OTCMKTS:EUSHY) versus Loblaw Companies (OTCMKTS:LBLCF) Critical Contrast

Loblaw Companies (OTCMKTS:LBLCF) and Eurocash (OTCMKTS:EUSHY) are both consumer defensive companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.

Analyst Recommendations

This is a breakdown of current ratings for Loblaw Companies and Eurocash, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loblaw Companies	0	0	0	0	0.00
Eurocash	0	1	0	0	2.00

Earnings & Valuation

This table compares Loblaw Companies and Eurocash”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loblaw Companies	$44.53 billion	1.21	$1.58 billion	$0.50	91.18
Eurocash	N/A	N/A	N/A	$1.32	1.36

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

Profitability

This table compares Loblaw Companies and Eurocash’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Loblaw Companies	3.93%	22.74%	6.30%
Eurocash	N/A	N/A	N/A

Insider & Institutional Ownership

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

Summary

Loblaw Companies beats Eurocash on 5 of the 8 factors compared between the two stocks.

About Loblaw Companies

Loblaw Companies Limited, a food and pharmacy company, provides grocery, pharmacy and healthcare services, health and beauty products, apparels, general merchandise, financial services, and wireless mobile products and services in Canada. It operates in two segments, Retail and Financial Services. The Retail segment operates corporate and franchise-owned retail food, and associate-owned drug stores. This segment also includes in-store pharmacies, health care services, other health and beauty product stores, apparel stores, and other general merchandise stores. The Financial Services segment provides credit card and banking services, the PC Optimum loyalty program, insurance brokerage services, and telecommunication services. The company offers PC Health app. It provides its products and services under various brands. The company was founded in 1919 and is headquartered in Brampton, Canada. Loblaw Companies Limited operates as a subsidiary of George Weston Limited.

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.