Analyzing Jeronimo Martins SGPS (OTCMKTS:JRONY) & Eurocash (OTCMKTS:EUSHY)

Jeronimo Martins SGPS (OTCMKTS:JRONY) and Eurocash (OTCMKTS:EUSHY) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Earnings and Valuation

This table compares Jeronimo Martins SGPS and Eurocash”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jeronimo Martins SGPS	$40.71 billion	0.32	$732.02 million	$2.35	17.43
Eurocash	N/A	N/A	N/A	$1.32	1.03

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

Institutional and Insider 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 is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Jeronimo Martins SGPS and Eurocash, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jeronimo Martins SGPS	1	0	3	1	2.80
Eurocash	0	0	0	0	0.00

Profitability

This table compares Jeronimo Martins SGPS and Eurocash’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jeronimo Martins SGPS	1.73%	20.03%	4.24%
Eurocash	N/A	N/A	N/A

Dividends

Jeronimo Martins SGPS pays an annual dividend of $0.92 per share and has a dividend yield of 2.2%. Eurocash pays an annual dividend of $0.58 per share and has a dividend yield of 42.6%. Jeronimo Martins SGPS pays out 39.1% of its earnings in the form of a dividend. Eurocash pays out 43.9% 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.

Summary

Jeronimo Martins SGPS beats Eurocash on 10 of the 12 factors compared between the two stocks.

About Jeronimo Martins SGPS

Jerónimo Martins, SGPS, S.A. operates in the food distribution and specialized retail sectors in Portugal, Poland, and Colombia. The company operates through Portugal Retail; Portugal Cash & Carry; Poland Retail; Colombia Retail; and Others, Eliminations and Adjustments segments. It operates food stores under the Biedronka name; and a chain of health and beauty stores under the Hebe banner in Poland, as well as food stores under the Ara name in Colombia. The company also operates supermarkets under the Pingo Doce banner; and cash and carry stores under the Recheio name in Portugal, and under the Bodega del Canasto name in Colombia. In addition, it operates restaurants under the Pingo Doce name; para-pharmacies and petrol stations under Bem-Estar brand; and clothing under Code brand. Further, the company operates coffee shops and kiosks under the Jeronymo name; and chocolates and confectionary retail stores under Hussel name. Additionally, the company engages in human resources top management, real estate management and administration, training, and saline brackish waters aquaculture; wholesale of fruit and vegetables; retail management, consultancy, and logistics activities; purchase and sale of real estate; growing of crops and farming of animals; retail sale of health and beauty products; manufacture of milk and dairy products; rental of air transport equipment; and provision of business portfolio management, financial, and sea passenger water transport services. It is also involved in the trading and distribution of consumer goods; retail and wholesale of non-food products; other business support service activities; and provision of services in the area of wholesale and retail distribution. The company was founded in 1792 and is headquartered in Lisbon, Portugal. Jerónimo Martins, SGPS, S.A. operates as a subsidiary of Sociedade Francisco Manuel Dos Santos, S.G.P.S., S.A.

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.