Reviewing Eurocash (OTCMKTS:EUSHY) and Grocery Outlet (NASDAQ:GO)

Grocery Outlet (NASDAQ:GO) and Eurocash (OTCMKTS:EUSHY) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Valuation and Earnings

This table compares Grocery Outlet and Eurocash”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grocery Outlet	$3.97 billion	0.44	$79.44 million	$0.51	34.90
Eurocash	N/A	N/A	N/A	$1.32	2.65

Grocery Outlet has higher revenue and earnings than Eurocash. Eurocash is trading at a lower price-to-earnings ratio than Grocery Outlet, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

99.9% of Grocery Outlet shares are held by institutional investors. Comparatively, 0.2% of Eurocash shares are held by institutional investors. 4.5% of Grocery Outlet shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Grocery Outlet and Eurocash, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grocery Outlet	1	8	2	1	2.25
Eurocash	0	0	0	0	0.00

Grocery Outlet currently has a consensus target price of $18.00, suggesting a potential upside of 1.12%. Given Grocery Outlet’s stronger consensus rating and higher possible upside, equities analysts plainly believe Grocery Outlet is more favorable than Eurocash.

Profitability

This table compares Grocery Outlet and Eurocash’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grocery Outlet	1.20%	5.25%	2.11%
Eurocash	N/A	N/A	N/A

Summary

Grocery Outlet beats Eurocash on 11 of the 12 factors compared between the two stocks.

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products. The company was founded in 1946 and is headquartered in Emeryville, California.

About Eurocash

Eurocash S.A. engages in the wholesale distribution of food and other fast moving consumer goods (FMCG) in Poland. The company operates through Wholesale, Retail, and Projects segments. Its FMCG products include food products, soft drinks, alcoholic beverages, tobacco products, and household chemicals and cosmetics. The company markets its products to traditional retail stores, including small supermarkets, grocery stores, and specialized grocery stores; and kiosks, retail outlets, and convenience stores, restaurants, gas stations, hotel and café chains, and catering outlets. It operates a network of Cash & Carry warehouses; Delikatesy Centrum network supermarkets; Inmedio; and franchise and partner stores of Eurocash distribution. Eurocash S.A. was incorporated in 2014 and is based in Komorniki, Poland.