Reviewing Village Super Market (NASDAQ:VLGEA) & Raia Drogasil (OTCMKTS:RADLY)

Village Super Market (NASDAQ:VLGEA) and Raia Drogasil (OTCMKTS:RADLY) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.

Institutional & Insider Ownership

39.0% of Village Super Market shares are owned by institutional investors. 59.1% of Village Super Market shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Village Super Market pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. Raia Drogasil pays an annual dividend of $0.04 per share and has a dividend yield of 1.2%. Village Super Market pays out 27.2% of its earnings in the form of a dividend. Raia Drogasil pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Village Super Market is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current recommendations and price targets for Village Super Market and Raia Drogasil, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Village Super Market	0	0	1	0	3.00
Raia Drogasil	0	1	0	0	2.00

Earnings and Valuation

This table compares Village Super Market and Raia Drogasil”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Village Super Market	$2.32 billion	0.29	$56.38 million	$3.68	12.34
Raia Drogasil	$7.93 billion	0.55	$232.27 million	$0.05	66.40

Raia Drogasil has higher revenue and earnings than Village Super Market. Village Super Market is trading at a lower price-to-earnings ratio than Raia Drogasil, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Village Super Market	2.27%	10.80%	5.40%
Raia Drogasil	2.97%	18.20%	5.32%

Summary

Village Super Market beats Raia Drogasil on 8 of the 14 factors compared between the two stocks.

About Village Super Market

Village Super Market, Inc. operates a chain of supermarkets in the United States. The company offers grocery, meat, produce, dairy, deli, seafood, prepared foods, and bakery and frozen foods. It also provides non-food products, including health and beauty care, general merchandise, liquor, and pharmacy products through retail and online stores. Village Super Market, Inc. was founded in 1937 and is based in Springfield, New Jersey.

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.