Critical Review: J Sainsbury (OTCMKTS:JSNSF) and Sendas Distribuidora (NYSE:ASAI)

J Sainsbury (OTCMKTS:JSNSF) and Sendas Distribuidora (NYSE:ASAI) are both consumer defensive companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Dividends

J Sainsbury pays an annual dividend of $0.17 per share and has a dividend yield of 5.3%. Sendas Distribuidora pays an annual dividend of $0.05 per share and has a dividend yield of 0.4%. J Sainsbury pays out 1,061.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sendas Distribuidora pays out 9.4% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares J Sainsbury and Sendas Distribuidora’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
J Sainsbury	N/A	N/A	N/A	$0.02	202.06
Sendas Distribuidora	$13.32 billion	0.26	$142.21 million	$0.53	24.34

Sendas Distribuidora has higher revenue and earnings than J Sainsbury. Sendas Distribuidora is trading at a lower price-to-earnings ratio than J Sainsbury, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for J Sainsbury and Sendas Distribuidora, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
J Sainsbury	0	0	0	0	N/A
Sendas Distribuidora	0	0	1	0	3.00

Profitability

This table compares J Sainsbury and Sendas Distribuidora’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
J Sainsbury	N/A	N/A	N/A
Sendas Distribuidora	1.07%	16.78%	1.75%

Institutional & Insider Ownership

23.0% of J Sainsbury shares are held by institutional investors. Comparatively, 8.8% of Sendas Distribuidora shares are held by institutional investors. 0.4% of Sendas Distribuidora shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Sendas Distribuidora beats J Sainsbury on 8 of the 11 factors compared between the two stocks.

About J Sainsbury

J Sainsbury plc, together with its subsidiaries, engages in the food, general merchandise and clothing retailing, and financial services activities in the United Kingdom and the Republic of Ireland. It operates through three segments: Retail Food, Retail General Merchandise and Clothing, and Financial Services. The company operates various store formats, including convenience stores and supermarkets. It is also involved in the online grocery and general merchandise operations. In addition, it offers financial services, such as credit cards, scorecards, and personal loans; and home, car, pet, travel, and life insurance products. J Sainsbury plc was founded in 1869 and is headquartered in London, the United Kingdom.

About Sendas Distribuidora

Sendas Distribuidora S.A. engages in the retail and wholesale sale of food products, bazaar items, and other products in Brazil. The company serves restaurants, pizzerias, snack bars, schools, small businesses, religious institutions, hospitals, hotels, grocery stores, neighborhood supermarkets, and individuals. It sells its products through brick-and-mortar stores, as well as through telesales. The company was founded in 1974 and is headquartered in Rio de Janeiro, Brazil.