Reviewing Metcash (OTCMKTS:MHTLY) & PriceSmart (NASDAQ:PSMT)

PriceSmart (NASDAQ:PSMTGet Free Report) and Metcash (OTCMKTS:MHTLYGet Free Report) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for PriceSmart and Metcash, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PriceSmart 0 0 2 0 3.00
Metcash 0 0 0 0 0.00

PriceSmart currently has a consensus price target of $198.00, indicating a potential upside of 12.05%. Given PriceSmart’s stronger consensus rating and higher probable upside, equities analysts clearly believe PriceSmart is more favorable than Metcash.

Insider & Institutional Ownership

80.5% of PriceSmart shares are held by institutional investors. 17.0% of PriceSmart shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares PriceSmart and Metcash”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PriceSmart $5.69 billion 0.96 $147.89 million $5.21 33.92
Metcash N/A N/A N/A N/A N/A

PriceSmart has higher revenue and earnings than Metcash.

Profitability

This table compares PriceSmart and Metcash’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PriceSmart 2.82% 12.16% 6.67%
Metcash N/A N/A N/A

Summary

PriceSmart beats Metcash on 9 of the 9 factors compared between the two stocks.

About PriceSmart

(Get Free Report)

PriceSmart, Inc. owns and operates U.S.-style membership shopping warehouse clubs in the United States, Central America, the Caribbean, and Colombia. The company provides basic and private label consumer products under the Member's Selection brand, including groceries, cleaning supplies, health and beauty aids, meat, produce, deli, seafood, and poultry. It offers electronics, large and small appliances, automotive, hardware, sporting goods, seasonal products, clothing, domestics, and home furnishing products. In addition, the company offers food and bakery services, as well as health services, such as optical, audiology, and pharmacy. Further, it operates an e-commerce platform for online ordering, curbside pickup, and delivery services. PriceSmart, Inc. was incorporated in 1994 and is headquartered in San Diego, California.

About Metcash

(Get Free Report)

Metcash Limited operates as a wholesale distribution and marketing company in Australia and New Zealand. It operates through Food, Liquor, and Hardware segments. The Food segment distributes a range of products and services to independent supermarket and convenience retail outlets. The Liquor segment engages in the distribution of liquor products to independent retail outlets and hotels. The Hardware segment distributes hardware products to independent retail outlets; and operates company owned retail stores. The company serves independent retailers in the food, liquor, and hardware sectors. Metcash Limited was founded in 1920 and is based in Macquarie Park, Australia.

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