Companhia Brasileira de Distribuicao (NYSE: CBD) and GNC Holdings (NYSE:GNC) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitabiliy, institutional ownership and earnings.
Institutional & Insider Ownership
3.3% of Companhia Brasileira de Distribuicao shares are held by institutional investors. Comparatively, 83.3% of GNC Holdings shares are held by institutional investors. 0.8% of GNC Holdings 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.
This table compares Companhia Brasileira de Distribuicao and GNC Holdings’ net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Companhia Brasileira de Distribuicao N/A 4.46% 1.34% GNC Holdings -14.56% 285.93% 4.49%
GNC Holdings pays an annual dividend of $0.40 per share and has a dividend yield of 4.1%. Companhia Brasileira de Distribuicao does not pay a dividend. GNC Holdings pays out -7.5% of its earnings in the