Analyzing Almacenes Éxito (NYSE:EXTO) & PriceSmart (NASDAQ:PSMT)

PriceSmart (NASDAQ:PSMT) and Almacenes Éxito (NYSE:EXTO) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for PriceSmart and Almacenes Éxito, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PriceSmart	0	0	1	0	3.00
Almacenes Éxito	0	0	0	0	N/A

PriceSmart currently has a consensus target price of $90.00, indicating a potential upside of 0.51%. Given PriceSmart’s higher possible upside, equities research analysts plainly believe PriceSmart is more favorable than Almacenes Éxito.

Earnings & Valuation

This table compares PriceSmart and Almacenes Éxito”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PriceSmart	$4.41 billion	0.62	$109.21 million	$4.12	21.73
Almacenes Éxito	$20,896.87 billion	0.00	$25.20 million	N/A	N/A

PriceSmart has higher earnings, but lower revenue than Almacenes Éxito.

Institutional & Insider Ownership

80.5% of PriceSmart shares are held by institutional investors. 18.6% of PriceSmart shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PriceSmart	2.60%	11.89%	6.43%
Almacenes Éxito	N/A	N/A	N/A

Dividends

PriceSmart pays an annual dividend of $1.16 per share and has a dividend yield of 1.3%. Almacenes Éxito pays an annual dividend of $0.10 per share and has a dividend yield of 2.5%. PriceSmart pays out 28.2% of its earnings in the form of a dividend.

Summary

PriceSmart beats Almacenes Éxito on 9 of the 12 factors compared between the two stocks.

About PriceSmart

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 Almacenes Éxito

Almacenes Éxito S.A. operates as a retail commerce company in South America. The company operates a chain of retail stores primarily under the Éxito, Carulla, Surtimax, Super Inter, Surti Mayorista, Libertad, Mini Libertad, Devoto, Disco, and Géant brands. It is also involved in the online commerce activities. In addition, the company engages in the credit facilities, insurance, money transfers and remittances, mobile phone services, trade tourist package trips and tickets, repair and maintain furnishings, paperwork, and energy trade activities; acquisition and building commercial premises for establishing stores, malls, or other locations; investing in property, promoting, and developing various kinds of real estate projects; and leasing of premises. Further, it invests in shares, bonds, trade papers, and other securities; enters into firm factoring agreements; and distributes oil-based liquid fuels through service stations, as well as alcohols, biofuels, and natural gas for vehicles and other fuels used in the automotive, industrial, fluvial, maritime, and air transport sectors. Almacenes Éxito S.A. was founded in 1905 and is headquartered in Envigado, Colombia. As of January 19, 2024, Almacenes Éxito S.A. operates as a subsidiary of Super Selectos El Salvador.