Comparing United Natural Foods (NYSE:UNFI) and Raia Drogasil (OTCMKTS:RADLY)

Raia Drogasil (OTCMKTS:RADLY) and United Natural Foods (NYSE:UNFI) are both mid-cap consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.

Earnings & Valuation

This table compares Raia Drogasil and United Natural Foods”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	$0.15	27.87
United Natural Foods	$31.15 billion	0.09	$84.00 million	$1.34	35.96

Raia Drogasil has higher earnings, but lower revenue than United Natural Foods. Raia Drogasil is trading at a lower price-to-earnings ratio than United Natural Foods, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for Raia Drogasil and United Natural Foods, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Raia Drogasil	0	1	0	0	2.00
United Natural Foods	0	7	2	0	2.22

United Natural Foods has a consensus target price of $52.00, suggesting a potential upside of 7.92%. Given United Natural Foods’ stronger consensus rating and higher probable upside, analysts clearly believe United Natural Foods is more favorable than Raia Drogasil.

Profitability

This table compares Raia Drogasil and United Natural Foods’ 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%
United Natural Foods	0.27%	10.51%	2.28%

Institutional & Insider Ownership

87.6% of United Natural Foods shares are held by institutional investors. 2.4% of United Natural Foods shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

United Natural Foods beats Raia Drogasil on 8 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 United Natural Foods

United Natural Foods, Inc., together with its subsidiaries, distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. It operates in two segments, Wholesale and Retail. The company offers grocery and general merchandise, produce, perishables and frozen foods, wellness and personal care items, and bulk and foodservice products. It also provides nuts, dried fruit, seeds, trail mixes, granola, natural and organic snack items, and confections under the Woodstock Farms Manufacturing name; organic, non-GMO project verified, and specialty food and non-food items under the Blue Marble brand name; pet food under the WILD HARVEST brand name; and various products under the ESSENTIAL EVERYDAY, SHOPPERS VALUE, Field Day, EQUALINE, CULINARY CIRCLE, and STONE RIDGE CREAMERY brand names. In addition, the company provides home, health and beauty care, and pharmacy products, as well as private label products through a network of Cub Foods and Shoppers retail grocery stores; and retail store support, pricing strategy, shelf and planogram management, advertising, couponing, ecommerce, consumer convenience, store design, equipment sourcing, electronic payments processing, network and data hosting, point-of-sale hardware and software, automation tools, sustainability, and administrative back-office solution services. Further, it offers consumer and trade marketing programs, and programs to support suppliers in understanding its markets. The company serves chains, independent retailers, and supernatural chains, as well as foodservice, ecommerce, conventional military business, and other sales customers. United Natural Foods, Inc. was founded in 1976 and is headquartered in Providence, Rhode Island.