Companhia Brasileira de Distribuicao (NYSE:CBD) and QKL Stores (OTCMKTS:QKLS) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Dividends

Companhia Brasileira de Distribuicao pays an annual dividend of $0.39 per share and has a dividend yield of 1.8%. QKL Stores does not pay a dividend. Companhia Brasileira de Distribuicao pays out 84.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of recent recommendations and price targets for Companhia Brasileira de Distribuicao and QKL Stores, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Companhia Brasileira de Distribuicao 0 0 4 0 3.00
QKL Stores 0 0 0 0 N/A

Volatility and Risk

Companhia Brasileira de Distribuicao has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, QKL Stores has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Insider and Institutional Ownership

1.8% of Companhia Brasileira de Distribuicao shares are held by institutional investors. 0.0% of Companhia Brasileira de Distribuicao shares are held by insiders. Comparatively, 52.8% of QKL Stores shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Companhia Brasileira de Distribuicao and QKL Stores’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Companhia Brasileira de Distribuicao 2.25% 4.54% 1.31%
QKL Stores N/A N/A N/A

Earnings & Valuation

This table compares Companhia Brasileira de Distribuicao and QKL Stores’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Companhia Brasileira de Distribuicao $13.99 billion 0.41 $193.87 million $0.46 46.67
QKL Stores $270.06 million 0.00 -$31.22 million N/A N/A

Companhia Brasileira de Distribuicao has higher revenue and earnings than QKL Stores.

Summary

Companhia Brasileira de Distribuicao beats QKL Stores on 9 of the 12 factors compared between the two stocks.

About Companhia Brasileira de Distribuicao

Companhia Brasileira de Distribuição engages in the retail of food, clothing, home appliances, electronics, and other products through its chain of hypermarkets, supermarkets, specialized stores, and department stores in Brazil. The company operates through two segments, Food Retail; and Cash and Carry. The Food retail segment sells non-perishable food products, beverages, fruits, vegetables, meat, breads, cold cuts, dairy products, cleaning products, disposable products, and personal care products; and non-food products, such as clothing items, baby items, shoes and accessories, household articles, books, magazines, CDs and DVDs, stationery, handcrafts, toys, sports and camping gears, furniture, mobile phones, mattresses, pet products, and gardening products, as well as electronic products, including personal computers, software, computer accessories, and sound and image systems. This segment also offers medications and cosmetics at its drugstores; and non-food products at gas stations, as well as rents commercial spaces. It operates its supermarkets under the banners of Pão de Açúcar and Extra Supermercado; hypermarkets under the banner of Extra Hiper; and neighborhood stores under the banners of Minimercado Extra, Minuto Pão de Açúcar, and Aliados Compre Bem; and gas stations and drugstores under the banner of Extrabanner, as well as sells its products through its Websites, paodeacucar.com and extra.com.br. The Cash and Carry segment sells grocery, food, perishable, beverage, wrapping, hygiene and cleaning products, and other products to resellers, intermediate consumers, retail customers, and small and mid-sized companies through the Assaí banner. As of December 31, 2017, the company operated 882 stores, 72 gas stations, and 127 drugstores, as well as 23 distribution centers and depots in Brazilian states and the Federal District. Companhia Brasileira de Distribuição was founded in 1948 and is headquartered in São Paulo, Brazil.

About QKL Stores

QKL Stores Inc., together with its subsidiaries, operates supermarket chains in northeastern China and Inner Mongolia. Its supermarkets and hypermarkets sell grocery items, such as instant foods, canned foods, packaged rice and wheat powder, crackers and chips, rice and ground wheat, bottled water and beverages, and cigarettes, as well as non-food items, including cleaning products, cosmetics, and disposable razors. The company also sells fresh-food items comprising raw meat, cooked meats, seafood, noodles and pastas, milk, yogurt, eggs, and packaged dumplings, as well as bakery items comprising breads, buns, and other self-prepared foods. In addition, it offers other non-food items, such as clothing and shoes, books and stationery, bedding and home furnishings, office supplies, toys, sporting goods, and other items, as well as electronics and household use items, such as irons, electric shavers, hair dryers, and massage machines. Further, the company operates department stores that sell brand-name and luxury clothing and accessories, cosmetics, small electronics, jewelry, books, home furnishings, and bedding, as well as have a movie theater and a traditional beauty salon. As of December 31, 2015, the company operated 25 supermarkets, 16 hypermarkets, and 4 department stores. QKL Stores Inc. is headquartered in Daqing, the People's Republic of China.

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