Head to Head Contrast: PriceSmart (NASDAQ:PSMT) & Raia Drogasil (OTCMKTS:RADLY)

PriceSmart (NASDAQ:PSMT) and Raia Drogasil (OTCMKTS:RADLY) are both mid-cap consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Insider and Institutional Ownership

80.5% of PriceSmart shares are owned by institutional investors. 17.0% of PriceSmart shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares PriceSmart and Raia Drogasil”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PriceSmart	$5.27 billion	1.01	$147.89 million	$5.21	33.20
Raia Drogasil	N/A	N/A	N/A	N/A	N/A

PriceSmart has higher revenue and earnings than Raia Drogasil.

Dividends

PriceSmart pays an annual dividend of $1.40 per share and has a dividend yield of 0.8%. Raia Drogasil pays an annual dividend of $0.03 per share and has a dividend yield of 0.8%. PriceSmart pays out 26.9% of its earnings in the form of a dividend. PriceSmart has increased its dividend for 4 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PriceSmart	2.82%	12.16%	6.67%
Raia Drogasil	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations and price targets for PriceSmart and Raia Drogasil, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PriceSmart	0	0	2	0	3.00
Raia Drogasil	0	1	0	0	2.00

PriceSmart presently has a consensus target price of $198.00, suggesting a potential upside of 14.46%. Given PriceSmart’s stronger consensus rating and higher probable upside, research analysts plainly believe PriceSmart is more favorable than Raia Drogasil.

Summary

PriceSmart beats Raia Drogasil on 10 of the 12 factors compared between the two stocks.

About PriceSmart

PriceSmart, Inc. owns and operates U.S.-style membership shopping warehouse clubs in the United States, Central America, the Caribbean, and Colombia. The company provides basic and private label consumer products under the Member's Selection brand, including groceries, cleaning supplies, health and beauty aids, meat, produce, deli, seafood, and poultry. It offers electronics, large and small appliances, automotive, hardware, sporting goods, seasonal products, clothing, domestics, and home furnishing products. In addition, the company offers food and bakery services, as well as health services, such as optical, audiology, and pharmacy. Further, it operates an e-commerce platform for online ordering, curbside pickup, and delivery services. PriceSmart, Inc. was incorporated in 1994 and is headquartered in San Diego, California.

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.