Reviewing BJ’s Wholesale Club (NYSE:BJ) & Raia Drogasil (OTCMKTS:RADLY)

Raia Drogasil (OTCMKTS:RADLY) and BJ’s Wholesale Club (NYSE:BJ) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.

Valuation and Earnings

This table compares Raia Drogasil and BJ’s Wholesale Club”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Raia Drogasil	$7.92 billion	0.69	$232.27 million	$0.05	82.60
BJ’s Wholesale Club	$21.46 billion	0.59	$578.38 million	$4.57	21.77

BJ’s Wholesale Club has higher revenue and earnings than Raia Drogasil. BJ’s Wholesale Club is trading at a lower price-to-earnings ratio than Raia Drogasil, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

98.6% of BJ’s Wholesale Club shares are held by institutional investors. 1.1% of BJ’s Wholesale Club shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Raia Drogasil and BJ’s Wholesale Club’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Raia Drogasil	2.99%	20.12%	5.88%
BJ’s Wholesale Club	2.62%	27.40%	7.69%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Raia Drogasil and BJ’s Wholesale Club, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Raia Drogasil	0	1	0	0	2.00
BJ’s Wholesale Club	1	8	11	0	2.50

BJ’s Wholesale Club has a consensus price target of $106.06, suggesting a potential upside of 6.62%. Given BJ’s Wholesale Club’s stronger consensus rating and higher probable upside, analysts clearly believe BJ’s Wholesale Club is more favorable than Raia Drogasil.

Summary

BJ’s Wholesale Club beats Raia Drogasil on 10 of the 13 factors compared between the two stocks.

About Raia Drogasil

Raia Drogasil S.A. engages in the retail sale of medicines, perfumery, personal care and beauty products, cosmetics, dermocosmetics, and specialty medicines in Brazil. It also markets its goods through telesales and call centers in the states of São Paulo, Tocantins, and Pernambuco. The company was founded in 1905 and is headquartered in São Paulo, Brazil.

About BJ’s Wholesale Club

BJ’s Wholesale Club Holdings, Inc. engages in the operation of membership warehouse clubs. Its product categories include grocery, household and pet, television and electronics, furniture, computer and tablets, patio and outdoor living, lawn and garden, baby and kids, toys, home, health and beauty, appliances, and jewelry. The company was founded in 1984 and is headquartered in Marlborough, MA.