China Jo-Jo Drugstores (NASDAQ:CJJD) and Rite Aid (NYSE:RAD) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.
Valuation and Earnings
This table compares China Jo-Jo Drugstores and Rite Aid’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|China Jo-Jo Drugstores||$107.55 million||0.32||-$930,000.00||N/A||N/A|
|Rite Aid||$21.64 billion||0.01||-$422.21 million||N/A||N/A|
China Jo-Jo Drugstores has higher earnings, but lower revenue than Rite Aid.
This is a summary of current recommendations and price targets for China Jo-Jo Drugstores and Rite Aid, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Jo-Jo Drugstores||0||0||0||0||N/A|
Rite Aid has a consensus price target of $20.00, indicating a potential upside of 252.73%. Given Rite Aid’s higher probable upside, analysts plainly believe Rite Aid is more favorable than China Jo-Jo Drugstores.
Institutional and Insider Ownership
18.2% of China Jo-Jo Drugstores shares are held by institutional investors. 31.3% of China Jo-Jo Drugstores shares are held by insiders. Comparatively, 2.1% of Rite Aid shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
China Jo-Jo Drugstores has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Rite Aid has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500.
This table compares China Jo-Jo Drugstores and Rite Aid’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Jo-Jo Drugstores||-2.37%||-15.04%||-3.67%|
China Jo-Jo Drugstores Company Profile
China Jo-Jo Drugstores, Inc., together with its subsidiaries, operates as a retailer and distributor of pharmaceutical and other healthcare products in the People's Republic of China. The company operates through four segments: Retail Drugstores, Online Pharmacy, Drug Wholesale, and Herb Farming. Its stores provide various pharmaceutical products, including prescription and over-the-counter drugs, nutritional supplements, traditional Chinese medicines (TCM), personal and family care products, and medical devices, as well as convenience products, such as consumable, seasonal, and promotional items. The company also operates licensed doctors of Western medicine and TCM onsite for consultation, examination, and treatment of common ailments at scheduled hours. In addition, it operates dada360.com, an online drugstore that retails OTC drugs and nutritional supplements. Further, the company distributes third-party pharmaceutical products primarily to trading companies, as well as cultivates and wholesales herbs used for TCM. As of March 31, 2018, it had 122 retail pharmacies under the Jiuzhou Grand Pharmacy name, as well as operates 9 drugstores under the Jiuzhou Grand Pharmacy name in Zhejiang Province. China Jo-Jo Drugstores, Inc. is headquartered in Hangzhou, the People's Republic of China.
Rite Aid Company Profile
Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. It operates through two segments, Retail Pharmacy and Pharmacy Services. The Retail Pharmacy segment sells prescription drugs and a range of other merchandise, including over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise, and other every day and convenience products. It also operates retail clinics that provide treatment for common conditions; and a range of preventive services comprising screenings, medical tests, immunizations, and basic physical exams. In addition, this segment offers healthcare coaching and disease management services. The Pharmacy Services segment provides pharmacy benefit management (PBM) services and a range of pharmacy-related services. This segment also performs prescription adjudication services for other PBMs; and offers integrated mail-order, specialty and compounding pharmacy, and infertility treatment services, as well as drug benefits under the federal government's Medicare Part D program. As of April 12, 2018, the company operated approximately 2,548 stores in 19 states. Rite Aid Corporation was founded in 1927 and is headquartered in Camp Hill, Pennsylvania.
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