Critical Comparison: Jerónimo Martins, SGPS (OTCMKTS:JRONY) versus Kuehne + Nagel International (OTCMKTS:KHNGY)

Jerónimo Martins, SGPS (OTCMKTS:JRONY) and Kuehne + Nagel International (OTCMKTS:KHNGY) are both large-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Volatility and Risk

Jerónimo Martins, SGPS has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Kuehne + Nagel International has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Profitability

This table compares Jerónimo Martins, SGPS and Kuehne + Nagel International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jerónimo Martins, SGPS	1.94%	21.07%	4.49%
Kuehne + Nagel International	4.83%	37.72%	10.11%

Dividends

Jerónimo Martins, SGPS pays an annual dividend of $0.87 per share and has a dividend yield of 2.0%. Kuehne + Nagel International pays an annual dividend of $1.13 per share and has a dividend yield of 2.3%. Jerónimo Martins, SGPS pays out 39.2% of its earnings in the form of a dividend. Kuehne + Nagel International pays out 51.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Jerónimo Martins, SGPS and Kuehne + Nagel International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jerónimo Martins, SGPS	1	0	0	0	1.00
Kuehne + Nagel International	1	2	0	0	1.67

Earnings and Valuation

This table compares Jerónimo Martins, SGPS and Kuehne + Nagel International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jerónimo Martins, SGPS	$33.12 billion	0.41	$819.30 million	$2.22	19.48
Kuehne + Nagel International	$26.55 billion	1.10	$1.59 billion	$2.19	22.15

Kuehne + Nagel International has lower revenue, but higher earnings than Jerónimo Martins, SGPS. Jerónimo Martins, SGPS is trading at a lower price-to-earnings ratio than Kuehne + Nagel International, indicating that it is currently the more affordable of the two stocks.

Summary

Kuehne + Nagel International beats Jerónimo Martins, SGPS on 9 of the 12 factors compared between the two stocks.

About Jerónimo Martins, SGPS

Jerónimo Martins, SGPS, S.A. operates in the food distribution and specialized retail sectors in Portugal, Poland, and Colombia. The company operates through Portugal Retail; Portugal Cash & Carry; Poland Retail; Colombia Retail; and Others, Eliminations and Adjustments segments. It operates food stores under the Biedronka name; and a chain of health and beauty stores under the Hebe banner in Poland, as well as food stores under the Ara name in Colombia. The company also operates supermarkets under the Pingo Doce banner; and cash and carry stores under the Recheio name in Portugal, and under the Bodega del Canasto name in Colombia. In addition, it operates restaurants under the Pingo Doce name; para-pharmacies and petrol stations under Bem-Estar brand; and clothing under Code brand. Further, the company operates coffee shops and kiosks under the Jeronymo name; and chocolates and confectionary retail stores under Hussel name. Additionally, the company engages in human resources top management, real estate management and administration, training, and saline brackish waters aquaculture; wholesale of fruit and vegetables; retail management, consultancy, and logistics activities; purchase and sale of real estate; growing of crops and farming of animals; retail sale of health and beauty products; manufacture of milk and dairy products; rental of air transport equipment; and provision of business portfolio management, financial, and sea passenger water transport services. It is also involved in the trading and distribution of consumer goods; retail and wholesale of non-food products; other business support service activities; and provision of services in the area of wholesale and retail distribution. The company was founded in 1792 and is headquartered in Lisbon, Portugal. Jerónimo Martins, SGPS, S.A. operates as a subsidiary of Sociedade Francisco Manuel Dos Santos, S.G.P.S., S.A.

About Kuehne + Nagel International

Kuehne + Nagel International AG, together with its subsidiaries, provides integrated logistics services worldwide. The company operates through four segments: Sea Logistics, Air Logistics, Road Logistics, and Contract Logistics. It offers less-than-container load, reefer and project logistics, and flexible container shipping solutions. The company also provides time-critical solutions, sea-air and time-defined products, airside and air charter services, cargo insurance, and customs clearance services. In addition, it offers spare parts logistics, production, and e-commerce logistics, distribution, packaging, and process solutions. Further, the company provides supply chain consulting and order management services. It serves aerospace, automotive, mobility, consumer, healthcare, high-tech and semicon, industrial, and perishables industries. The company was founded in 1890 and is based in Schindellegi, Switzerland. Kuehne + Nagel International AG is a subsidiary of Kuehne Holding AG.