Head-To-Head Review: Metcash (OTCMKTS:MHTLY) vs. PriceSmart (NASDAQ:PSMT)

PriceSmart (NASDAQ:PSMT) and Metcash (OTCMKTS:MHTLY) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Profitability

This table compares PriceSmart and Metcash’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PriceSmart	2.82%	12.16%	6.67%
Metcash	N/A	N/A	N/A

Insider & Institutional Ownership

80.5% of PriceSmart shares are held by institutional investors. 17.0% of PriceSmart shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares PriceSmart and Metcash”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PriceSmart	$5.69 billion	0.98	$147.89 million	$5.21	34.59
Metcash	N/A	N/A	N/A	N/A	N/A

PriceSmart has higher revenue and earnings than Metcash.

Analyst Recommendations

This is a summary of current ratings and recommmendations for PriceSmart and Metcash, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PriceSmart	0	0	2	0	3.00
Metcash	0	0	0	0	0.00

PriceSmart presently has a consensus target price of $198.00, suggesting a potential upside of 9.87%. Given PriceSmart’s stronger consensus rating and higher possible upside, equities analysts clearly believe PriceSmart is more favorable than Metcash.

Summary

PriceSmart beats Metcash on 9 of the 9 factors compared between the two stocks.

About PriceSmart

PriceSmart, Inc. owns and operates U.S.-style membership shopping warehouse clubs in the United States, Central America, the Caribbean, and Colombia. The company provides basic and private label consumer products under the Member's Selection brand, including groceries, cleaning supplies, health and beauty aids, meat, produce, deli, seafood, and poultry. It offers electronics, large and small appliances, automotive, hardware, sporting goods, seasonal products, clothing, domestics, and home furnishing products. In addition, the company offers food and bakery services, as well as health services, such as optical, audiology, and pharmacy. Further, it operates an e-commerce platform for online ordering, curbside pickup, and delivery services. PriceSmart, Inc. was incorporated in 1994 and is headquartered in San Diego, California.

About Metcash

Metcash Limited operates as a wholesale distribution and marketing company in Australia and New Zealand. It operates through Food, Liquor, and Hardware segments. The Food segment distributes a range of products and services to independent supermarket and convenience retail outlets. The Liquor segment engages in the distribution of liquor products to independent retail outlets and hotels. The Hardware segment distributes hardware products to independent retail outlets; and operates company owned retail stores. The company serves independent retailers in the food, liquor, and hardware sectors. Metcash Limited was founded in 1920 and is based in Macquarie Park, Australia.