Chefs’ Warehouse (NASDAQ:CHEF) vs. Atacadão (OTCMKTS:ATAAY) Critical Contrast

Atacadão (OTCMKTS:ATAAY) and Chefs’ Warehouse (NASDAQ:CHEF) are both consumer defensive companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and target prices for Atacadão and Chefs’ Warehouse, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atacadão	0	0	0	0	N/A
Chefs’ Warehouse	0	0	4	0	3.00

Chefs’ Warehouse has a consensus target price of $48.75, indicating a potential upside of 20.40%. Given Chefs’ Warehouse’s higher possible upside, analysts plainly believe Chefs’ Warehouse is more favorable than Atacadão.

Profitability

This table compares Atacadão and Chefs’ Warehouse’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atacadão	N/A	N/A	N/A
Chefs’ Warehouse	1.11%	12.62%	3.36%

Valuation & Earnings

This table compares Atacadão and Chefs’ Warehouse”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atacadão	N/A	N/A	N/A	N/A	N/A
Chefs’ Warehouse	$3.66 billion	0.44	$34.59 million	$0.87	46.54

Chefs’ Warehouse has higher revenue and earnings than Atacadão.

Institutional and Insider Ownership

91.6% of Chefs’ Warehouse shares are owned by institutional investors. 11.9% of Chefs’ Warehouse shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Chefs’ Warehouse beats Atacadão on 8 of the 8 factors compared between the two stocks.

About Atacadão

Atacadão S.A. engages in the wholesale and retail of food, clothing, home appliances, electronics, and other products in Brazil. The company operates through Retail, Atacadão, and Financial Solutions segments. The company offers alcoholic and non-alcoholic beverages; chocolate and cocoa powders, sugar and sweeteners, baby foods, rice, oats and cereals, cookies, toasts and snacks, coffee, teas, canned and uncanned products, sweets and deserts, flour, bean, yeast, grains and seed, pasta and sauces, mixture for bakery and confectionery, oils, fats and lard, soups and creams, and seasonings and condiments; and bathroom, kitchen, pool, clothing, and general cleaning products. It also provides personal hygiene and perfumery products; cold and diary products; meat, poultry, and fish products; packaging and disposables; frozen products; stationery and office products; and food baskets. The company offers its products through a chain of wholesale self-service and wholesale delivery stores, hypermarkets, supermarkets, convenience stores, gas stations, pharmacies, and e-commerce under the Carrefour and Atacadão brands. In addition, the company also credit cards and consumer finance, and other products, such as insurance policies. Atacadão S.A. was founded in 1962 and is headquartered in São Paulo, Brazil.

About Chefs’ Warehouse

The Chefs’ Warehouse, Inc., together with its subsidiaries, distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. The company’s product portfolio includes specialty food products, such as artisan charcuterie, specialty cheeses, unique oils and vinegars, truffles, caviar, chocolate, and pastry products; and center-of-the-plate products consisting of custom cut beef, seafood, and hormone-free poultry, as well as broadline food products comprising cooking oils, butter, eggs, milk, and flour. The company serves menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolatiers, cruise lines, casinos, and specialty food stores. It markets its center-of-the-plate products directly to consumers through a mail and e-commerce platform. The Chefs’ Warehouse, Inc. was founded in 1985 and is headquartered in Ridgefield, Connecticut.