Head to Head Comparison: Jeronimo Martins SGPS (OTCMKTS:JRONY) versus Ahold (OTCMKTS:ADRNY)

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

Dividends

Jeronimo Martins SGPS pays an annual dividend of $0.92 per share and has a dividend yield of 2.3%. Ahold pays an annual dividend of €0.93 per share and has a dividend yield of 2.6%. Jeronimo Martins SGPS pays out 39.1% of its earnings in the form of a dividend. Ahold pays out 31.5% 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. Ahold is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Jeronimo Martins SGPS and Ahold”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	17.36
Ahold	$104.46 billion	0.31	$2.56 billion	€2.95	12.33

Ahold has higher revenue and earnings than Jeronimo Martins SGPS. Ahold 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.

Volatility and Risk

Jeronimo Martins SGPS has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Ahold has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.

Profitability

This table compares Jeronimo Martins SGPS and Ahold’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%
Ahold	2.45%	16.64%	4.82%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Jeronimo Martins SGPS and Ahold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jeronimo Martins SGPS	1	0	4	1	2.83
Ahold	0	3	0	1	2.50

Insider & Institutional Ownership

0.2% of Ahold shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Ahold beats Jeronimo Martins SGPS on 8 of the 14 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 Ahold

Koninklijke Ahold Delhaize N.V. operates retail food stores and e-commerce in the United States, Europe, and internationally. The company's stores offer produce, dairy, meat, deli, bakery, seafood, and frozen products; grocery, beer, and wine; floral, pet food, health and beauty care, kitchen and cookware, gardening tools, general merchandise articles, electronics, newspapers and magazines, tobacco, etc.; gasoline; and pharmacy products. It operates its supermarkets, convenience stores, and online stores under the Food Lion, Stop & Shop, The GIANT Company, Hannaford, Giant Food, FreshDirect, Albert Heijn, bol.com, Etos, Gall & Gall, Delhaize, Albert, Alfa Beta Vassilopoulos, Mega Image, Delhaize Serbia, Peapod Digital labs, and Retail Business Service brands. 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 1867 and is headquartered in Zaandam, the Netherlands.