Head-To-Head Survey: Companhia Brasileira de Distribuicao (CBD) vs. SYSCO (SYY)
SYSCO (NYSE: SYY) and Companhia Brasileira de Distribuicao (NYSE:CBD) are both mid-cap non-cyclical consumer goods & services companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.
Volatility and Risk
SYSCO has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Companhia Brasileira de Distribuicao has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.
79.9% of SYSCO shares are held by institutional investors. Comparatively, 3.3% of Companhia Brasileira de Distribuicao shares are held by institutional investors. 9.6% of SYSCO shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares SYSCO and Companhia Brasileira de Distribuicao’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SYSCO||$55.37 billion||0.60||$1.14 billion||$2.19||28.95|
|Companhia Brasileira de Distribuicao||$11.95 billion||0.55||-$138.18 million||$0.14||176.21|
SYSCO has higher revenue and earnings than Companhia Brasileira de Distribuicao. SYSCO is trading at a lower price-to-earnings ratio than Companhia Brasileira de Distribuicao, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for SYSCO and Companhia Brasileira de Distribuicao, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Companhia Brasileira de Distribuicao||0||0||2||0||3.00|
SYSCO presently has a consensus price target of $58.91, indicating a potential downside of 7.07%. Given SYSCO’s higher possible upside, research analysts clearly believe SYSCO is more favorable than Companhia Brasileira de Distribuicao.
This table compares SYSCO and Companhia Brasileira de Distribuicao’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Companhia Brasileira de Distribuicao||0.64%||6.47%||1.97%|
SYSCO pays an annual dividend of $1.44 per share and has a dividend yield of 2.3%. Companhia Brasileira de Distribuicao pays an annual dividend of $0.32 per share and has a dividend yield of 1.3%. SYSCO pays out 65.8% of its earnings in the form of a dividend. Companhia Brasileira de Distribuicao pays out 228.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SYSCO has raised its dividend for 47 consecutive years. SYSCO is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
SYSCO beats Companhia Brasileira de Distribuicao on 14 of the 17 factors compared between the two stocks.
Sysco Corporation (Sysco) is a distributor of food and related products primarily to the foodservice or food-away-from-home industry. The Company’s segments include Broadline, SYGMA and Other. The Broadline segment includes its Broadline operations located in the Bahamas, Canada, Costa Rica, Ireland, Mexico and the United States. Broadline operating companies distribute a full line of food products and a range of non-food products to both traditional and chain restaurant customers, hospitals, schools, hotels, industrial caterers and other venues where foodservice products are served. SYGMA operating companies distribute a full line of food products and a range of non-food products to certain chain restaurant customer locations. The Other segment includes the Company’s specialty produce; custom-cut meat operations; lodging industry segments; a company that distributes specialty imported products; a company that distributes to international customers, and Sysco Ventures platform.
About Companhia Brasileira de Distribuicao
Companhia Brasileira de Distribuicao, directly or through its subsidiaries, is engaged in the retail of food, clothing, home appliances, electronics and other items through its chain of hypermarkets, supermarkets, specialized stores and department stores principally under the trade names Pao de Acucar, Minuto Pao de Acucar, Extra Hiper, Extra Super, Minimercado Extra, Assai an the neighborhood shopping mall brand Conviva. The Company’s segments include Retail, and Cash and carry segment. The Company’s Retail segment includes the banners Pao de Acucar, Minuto Pao de Acucar, Extra Hiper, Extra Supermercado, Minimercado Extra, Posto Extra, Drogaria Extra and GPA Malls & Properties. Its Cash & Carry segment includes the brand Assai. The Company is engaged in operations of retail stores located in approximately 20 states and the Federal District of Brazil.
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