Contrasting ZTE (OTCMKTS:ZTCOY) and Jerónimo Martins, SGPS (OTCMKTS:JRONY)

Jerónimo Martins, SGPS (OTCMKTS:JRONY) and ZTE (OTCMKTS:ZTCOY) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Valuation and Earnings

This table compares Jerónimo Martins, SGPS and ZTE’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jerónimo Martins, SGPS	$33.12 billion	0.38	$818.15 million	$2.60	15.28
ZTE	$17.75 billion	0.53	$1.06 billion	$0.47	8.60

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

Dividends

Jerónimo Martins, SGPS pays an annual dividend of $0.83 per share and has a dividend yield of 2.1%. ZTE pays an annual dividend of $0.07 per share and has a dividend yield of 1.7%. Jerónimo Martins, SGPS pays out 31.9% of its earnings in the form of a dividend. ZTE pays out 14.9% 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.

Risk & Volatility

Jerónimo Martins, SGPS has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, ZTE has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Jerónimo Martins, SGPS and ZTE, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jerónimo Martins, SGPS	1	0	1	0	2.00
ZTE	0	0	0	0	N/A

Profitability

This table compares Jerónimo Martins, SGPS and ZTE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jerónimo Martins, SGPS	2.47%	27.91%	6.07%
ZTE	5.89%	13.25%	4.04%

Summary

Jerónimo Martins, SGPS beats ZTE on 7 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 ZTE

ZTE Corporation provides integrated communication information solutions in the People's Republic of China, rest of Asia, Africa, Europe, the United States, and Oceania. It operates through three segments: Carriers' Networks, Government and Corporate Business, and Consumer Business. The Carriers' Network segment provides wireless access, wireline access, bearer systems, core networks, telecommunication software systems and services, and other technologies and product solutions for meeting carries' requirements. The Consumer Business segment offers smart phones, mobile data terminals, family terminals, and fusion terminals, as well as related software application and value-added services. The Government and Corporate Business segment focuses on providing informatization solutions for the government and corporations through the application of products, such as communications networks, Internet of Things, big data, and cloud computing. The company was founded in 1985 and is headquartered in Shenzhen, the People's Republic of China.