Raia Drogasil (RADLY) versus The Competition Critical Comparison

Raia Drogasil (OTCMKTS:RADLY) is one of 150 publicly-traded companies in the “Consumer Staples Distribution & Retail” industry, but how does it compare to its rivals? We will compare Raia Drogasil to related companies based on the strength of its dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Insider and Institutional Ownership

45.0% of shares of all “Consumer Staples Distribution & Retail” companies are owned by institutional investors. 19.7% of shares of all “Consumer Staples Distribution & Retail” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Raia Drogasil and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Raia Drogasil	$7.93 billion	$232.27 million	75.20
Raia Drogasil Competitors	$34.26 billion	$835.93 million	18.85

Raia Drogasil’s rivals have higher revenue and earnings than Raia Drogasil. Raia Drogasil is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Raia Drogasil and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Raia Drogasil	2.97%	18.20%	5.32%
Raia Drogasil Competitors	-25.60%	2.00%	2.62%

Dividends

Raia Drogasil pays an annual dividend of $0.04 per share and has a dividend yield of 1.1%. 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. As a group, “Consumer Staples Distribution & Retail” companies pay a dividend yield of 4.1% and pay out 36.7% of their earnings in the form of a dividend. Raia Drogasil lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a summary of current recommendations for Raia Drogasil and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Raia Drogasil	0	1	0	0	2.00
Raia Drogasil Competitors	2228	8215	9982	449	2.41

As a group, “Consumer Staples Distribution & Retail” companies have a potential upside of 63.15%. Given Raia Drogasil’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Raia Drogasil has less favorable growth aspects than its rivals.

Summary

Raia Drogasil rivals beat Raia Drogasil on 10 of the 14 factors compared.

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.