Critical Review: Loblaw Companies (OTCMKTS:LBLCF) vs. Sendas Distribuidora (NYSE:ASAI)

Loblaw Companies (OTCMKTS:LBLCFGet Free Report) and Sendas Distribuidora (NYSE:ASAIGet Free Report) are both consumer defensive companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.

Valuation and Earnings

This table compares Loblaw Companies and Sendas Distribuidora’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Loblaw Companies N/A N/A N/A ($0.22) -501.80
Sendas Distribuidora $13.32 billion 0.30 $142.21 million $0.53 27.43

Sendas Distribuidora has higher revenue and earnings than Loblaw Companies. Loblaw Companies is trading at a lower price-to-earnings ratio than Sendas Distribuidora, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Loblaw Companies and Sendas Distribuidora’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Loblaw Companies N/A N/A N/A
Sendas Distribuidora 1.07% 16.78% 1.75%

Analyst Ratings

This is a breakdown of current ratings and price targets for Loblaw Companies and Sendas Distribuidora, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Loblaw Companies 0 0 0 0 N/A
Sendas Distribuidora 0 0 1 0 3.00

Loblaw Companies presently has a consensus target price of $85.33, suggesting a potential downside of 23.14%. Given Loblaw Companies’ higher possible upside, analysts plainly believe Loblaw Companies is more favorable than Sendas Distribuidora.

Insider and Institutional Ownership

70.9% of Loblaw Companies shares are held by institutional investors. 0.4% of Sendas Distribuidora shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Loblaw Companies pays an annual dividend of $0.97 per share and has a dividend yield of 0.9%. Sendas Distribuidora pays an annual dividend of $0.05 per share and has a dividend yield of 0.3%. Loblaw Companies pays out -438.4% of its earnings in the form of a dividend. Sendas Distribuidora pays out 9.4% 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. Loblaw Companies is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Sendas Distribuidora beats Loblaw Companies on 8 of the 12 factors compared between the two stocks.

About Loblaw Companies

(Get Free Report)

Loblaw Companies Limited, a food and pharmacy company, provides grocery, pharmacy and healthcare services, health and beauty products, apparels, general merchandise, financial services, and wireless mobile products and services in Canada. It operates in two segments, Retail and Financial Services. The Retail segment operates corporate and franchise-owned retail food, and associate-owned drug stores. This segment also includes in-store pharmacies, health care services, other health and beauty product stores, apparel stores, and other general merchandise stores. The Financial Services segment provides credit card and banking services, the PC Optimum loyalty program, insurance brokerage services, and telecommunication services. The company offers PC Health app. It provides its products and services under various brands. The company was founded in 1919 and is headquartered in Brampton, Canada. Loblaw Companies Limited is a subsidiary of George Weston Limited.

About Sendas Distribuidora

(Get Free Report)

Sendas Distribuidora S.A. engages in the retail and wholesale sale of food products, bazaar items, and other products in Brazil. The company serves restaurants, pizzerias, snack bars, schools, small businesses, religious institutions, hospitals, hotels, grocery stores, neighborhood supermarkets, and individuals. It sells its products through brick-and-mortar stores, as well as through telesales. The company was founded in 1974 and is headquartered in Rio de Janeiro, Brazil.

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