Financial Survey: Diplomat Pharmacy (DPLO) vs. Companhia Brasileira de Distribuicao (CBD)

Diplomat Pharmacy (NYSE: DPLO) and Companhia Brasileira de Distribuicao (NYSE:CBD) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Earnings and Valuation

This table compares Diplomat Pharmacy and Companhia Brasileira de Distribuicao’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Diplomat Pharmacy $4.53 billion 0.32 $70.47 million $0.17 124.18
Companhia Brasileira de Distribuicao $13.52 billion 0.50 $772.66 million $0.14 180.57

Companhia Brasileira de Distribuicao has higher revenue and earnings than Diplomat Pharmacy. Diplomat Pharmacy is trading at a lower price-to-earnings ratio than Companhia Brasileira de Distribuicao, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

69.9% of Diplomat Pharmacy shares are owned by institutional investors. Comparatively, 3.5% of Companhia Brasileira de Distribuicao shares are owned by institutional investors. 30.2% of Diplomat Pharmacy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Diplomat Pharmacy has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Companhia Brasileira de Distribuicao has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500.

Profitability

This table compares Diplomat Pharmacy and Companhia Brasileira de Distribuicao’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diplomat Pharmacy 0.27% 7.97% 4.47%
Companhia Brasileira de Distribuicao 0.27% 5.46% 1.65%

Analyst Ratings

This is a breakdown of current recommendations for Diplomat Pharmacy and Companhia Brasileira de Distribuicao, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diplomat Pharmacy 1 8 3 0 2.17
Companhia Brasileira de Distribuicao 0 3 1 0 2.25

Diplomat Pharmacy presently has a consensus target price of $19.16, indicating a potential downside of 9.26%. Given Diplomat Pharmacy’s higher probable upside, equities research analysts plainly believe Diplomat Pharmacy is more favorable than Companhia Brasileira de Distribuicao.

Summary

Diplomat Pharmacy beats Companhia Brasileira de Distribuicao on 7 of the 13 factors compared between the two stocks.

About Diplomat Pharmacy

Diplomat Pharmacy, Inc. (Diplomat) operates a specialty pharmacy business, which stocks, dispenses and distributes prescriptions for various biotechnology and specialty pharmaceutical manufacturers. The Company operates through specialty pharmacy services segment. The Company’s primary focus is on medication management programs for individuals with chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, specialty infusion therapy, and various other serious and/or long-term conditions. The Company provides specialty pharmacy support services to a national network of retailers and independent pharmacy groups, hospitals and health systems. The Company offers various services, such as specialty drug dispensing, retail specialty services, hospital and health system services, and hub services. The Company’s patient care system is used to coordinate and track patient adherence and safety.

About Companhia Brasileira de Distribuicao

Companhia Brasileira de Distribuicao, directly or through its subsidiaries, is engaged in the retail of food, clothing, home appliances, electronics and other items through its chain of hypermarkets, supermarkets, specialized stores and department stores principally under the trade names Pao de Acucar, Minuto Pao de Acucar, Extra Hiper, Extra Super, Minimercado Extra, Assai an the neighborhood shopping mall brand Conviva. The Company’s segments include Retail, and Cash and carry segment. The Company’s Retail segment includes the banners Pao de Acucar, Minuto Pao de Acucar, Extra Hiper, Extra Supermercado, Minimercado Extra, Posto Extra, Drogaria Extra and GPA Malls & Properties. Its Cash & Carry segment includes the brand Assai. The Company is engaged in operations of retail stores located in approximately 20 states and the Federal District of Brazil.

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