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

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

Profitability

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

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

Dividends

Almacenes Éxito pays an annual dividend of $0.10 per share and has a dividend yield of 2.2%. PriceSmart pays an annual dividend of $1.16 per share and has a dividend yield of 1.3%. PriceSmart pays out 28.2% of its earnings in the form of a dividend.

Institutional & Insider Ownership

80.5% of PriceSmart shares are owned by institutional investors. 18.6% of PriceSmart 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.

Volatility and Risk

Almacenes Éxito has a beta of -0.43, suggesting that its stock price is 143% less volatile than the S&P 500. Comparatively, PriceSmart has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Analyst Recommendations

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

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

PriceSmart has a consensus target price of $90.00, suggesting a potential downside of 1.27%. Given PriceSmart’s higher possible upside, analysts clearly believe PriceSmart is more favorable than Almacenes Éxito.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Almacenes Éxito	$4.90 billion	0.15	$25.20 million	N/A	N/A
PriceSmart	$4.81 billion	0.58	$109.21 million	$4.12	22.13

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

Summary

PriceSmart beats Almacenes Éxito on 10 of the 13 factors compared between the two stocks.

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.

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.