Sendas Distribuidora (NYSE:ASAI) vs. Koninklijke Ahold Delhaize (OTCMKTS:AHODF) Financial Analysis

Koninklijke Ahold Delhaize (OTCMKTS:AHODF) and Sendas Distribuidora (NYSE:ASAI) are both consumer defensive companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.

Earnings & Valuation

This table compares Koninklijke Ahold Delhaize and Sendas Distribuidora”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koninklijke Ahold Delhaize	N/A	N/A	N/A	C$0.66	51.11
Sendas Distribuidora	$72.08 billion	0.02	$142.21 million	$0.46	12.01

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

Dividends

Koninklijke Ahold Delhaize pays an annual dividend of C$0.40 per share and has a dividend yield of 1.2%. Sendas Distribuidora pays an annual dividend of $0.05 per share and has a dividend yield of 0.9%. Koninklijke Ahold Delhaize pays out 60.1% of its earnings in the form of a dividend. Sendas Distribuidora pays out 10.9% 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.

Profitability

This table compares Koninklijke Ahold Delhaize and Sendas Distribuidora’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Koninklijke Ahold Delhaize	N/A	N/A	N/A
Sendas Distribuidora	0.89%	13.38%	1.48%

Institutional & Insider Ownership

29.4% of Koninklijke Ahold Delhaize shares are owned by institutional investors. Comparatively, 8.8% of Sendas Distribuidora shares are owned by institutional investors. 0.4% of Sendas Distribuidora shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Koninklijke Ahold Delhaize and Sendas Distribuidora, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koninklijke Ahold Delhaize	0	0	0	0	0.00
Sendas Distribuidora	0	2	0	1	2.67

Sendas Distribuidora has a consensus target price of $9.80, indicating a potential upside of 77.38%. Given Sendas Distribuidora’s stronger consensus rating and higher probable upside, analysts plainly believe Sendas Distribuidora is more favorable than Koninklijke Ahold Delhaize.

Summary

Sendas Distribuidora beats Koninklijke Ahold Delhaize on 9 of the 13 factors compared between the two stocks.

About Koninklijke Ahold Delhaize

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.

About Sendas Distribuidora

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.