Eurocash (OTCMKTS:EUSHF) and Koninklijke Ahold (OTCMKTS:ADRNY) are both consumer defensive companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Eurocash and Koninklijke Ahold’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eurocash N/A N/A N/A
Koninklijke Ahold 3.28% 12.94% 5.66%

Institutional and Insider Ownership

0.4% of Koninklijke Ahold shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Koninklijke Ahold pays an annual dividend of $0.65 per share and has a dividend yield of 2.5%. Eurocash does not pay a dividend. Koninklijke Ahold pays out 47.1% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings for Eurocash and Koninklijke Ahold, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eurocash 0 1 0 0 2.00
Koninklijke Ahold 1 3 0 0 1.75

Earnings and Valuation

This table compares Eurocash and Koninklijke Ahold’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eurocash N/A N/A N/A N/A N/A
Koninklijke Ahold $71.04 billion 0.45 $2.05 billion $1.38 18.88

Koninklijke Ahold has higher revenue and earnings than Eurocash.

Summary

Koninklijke Ahold beats Eurocash on 6 of the 8 factors compared between the two stocks.

About Eurocash

Eurocash S.A. distributes fast moving consumer goods (FMCG) in Poland. 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 and grocery stores; and kiosks and convenience stores at petrol stations, restaurants, hotels, cafeterias, and catering outlets. As of December 31, 2017, it operated a network of 180 Cash & Carry warehouses; 1,171 Delikatesy Centrum network supermarkets; 8,531 abc network grocery stores; and 4,905 managed stores. Eurocash S.A. is headquartered in Komorniki, Poland.

About Koninklijke Ahold

Koninklijke Ahold Delhaize N.V. operates retail food stores primarily in the United States and Europe. The company's store formats include supermarkets, superstores, online grocery shopping, convenience stores, drugstores, wine and liquor stores, online shopping for general merchandise, and compact hyper and supermarkets. As of December 31, 2017, it operated 6,637 stores primarily under 20 brands serving approximately 50 million customers, as well as online. The company was formerly known as Koninklijke Ahold N.V. and changed its name to Koninklijke Ahold Delhaize N.V. in July 2016. Koninklijke Ahold Delhaize N.V. was founded in 1887 and is headquartered in Zaandam, the Netherlands.

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