Critical Contrast: Tesco (OTCMKTS:TSCDY) vs. Almacenes Éxito (NYSE:EXTO)

Tesco (OTCMKTS:TSCDY) and Almacenes Éxito (NYSE:EXTO) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Dividends

Tesco pays an annual dividend of $0.62 per share and has a dividend yield of 4.3%. Almacenes Éxito pays an annual dividend of $0.10 per share and has a dividend yield of 2.3%.

Profitability

This table compares Tesco and Almacenes Éxito’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tesco	N/A	N/A	N/A
Almacenes Éxito	N/A	N/A	N/A

Valuation and Earnings

This table compares Tesco and Almacenes Éxito”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tesco	$84.79 billion	0.38	$1.49 billion	N/A	N/A
Almacenes Éxito	$4.90 billion	0.14	$25.20 million	N/A	N/A

Tesco has higher revenue and earnings than Almacenes Éxito.

Analyst Recommendations

This is a summary of recent ratings and price targets for Tesco and Almacenes Éxito, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tesco	0	0	1	2	3.67
Almacenes Éxito	0	0	0	0	N/A

Volatility and Risk

Tesco has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Almacenes Éxito has a beta of -0.43, indicating that its stock price is 143% less volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Tesco shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Tesco beats Almacenes Éxito on 8 of the 8 factors compared between the two stocks.

About Tesco

Tesco PLC, together with its subsidiaries, operates as a grocery retailer in the United Kingdom, Republic of Ireland, the Czech Republic, Slovakia, and Hungary. It offers grocery products through its stores, as well as online. The company is also involved in the food and drink wholesaling activities. In addition, it provides banking and insurance and mobile operating services. Further, the company operates a network of one stop convenience stores; and offers data science, technology, software, and consultancy services. Tesco PLC was founded in 1919 and is headquartered in Welwyn Garden City, the United Kingdom.

About Almacenes Éxito

Almacenes Éxito S.A. operates as a retail commerce company in South America. The company operates a chain of retail stores primarily under the Éxito, Carulla, Surtimax, Super Inter, Surti Mayorista, Libertad, Mini Libertad, Devoto, Disco, and Géant brands. It is also involved in the online commerce activities. In addition, the company engages in the credit facilities, insurance, money transfers and remittances, mobile phone services, trade tourist package trips and tickets, repair and maintain furnishings, paperwork, and energy trade activities; acquisition and building commercial premises for establishing stores, malls, or other locations; investing in property, promoting, and developing various kinds of real estate projects; and leasing of premises. Further, it invests in shares, bonds, trade papers, and other securities; enters into firm factoring agreements; and distributes oil-based liquid fuels through service stations, as well as alcohols, biofuels, and natural gas for vehicles and other fuels used in the automotive, industrial, fluvial, maritime, and air transport sectors. Almacenes Éxito S.A. was founded in 1905 and is headquartered in Envigado, Colombia. As of January 19, 2024, Almacenes Éxito S.A. operates as a subsidiary of Super Selectos El Salvador.