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

In the investment market, Jerónimo Martins, SGPS and ZTE are under close scrutiny. Both organizations operate in the wholesale and retail sectors, but what makes one of them more attractive for investment? In this analysis, we will take a detailed look at these two companies, analyze their institutional shares, risk levels, analyst recommendations, dividends, profitability, valuation, and financial results.

Assessment and income

When it comes to valuation and income, we see that Jerónimo Martins, SGPS demonstrates impressive results. With a total revenue of $33.12 billion, the price-to-earnings ratio is 0.38, and the net profit is $818.15 million, resulting in earnings per share of $2.60 and a price-to-earnings ratio of 15.28. Meanwhile, ZTE, with revenues of $17.75 billion, shows a higher net profit of $1.06 billion (earnings per share of $0.47), but its price-to-earnings ratio is significantly lower at 8.60. This indicates that despite lower revenues, ZTE has a higher profitability.

Dividends

Regarding dividends, Jerónimo Martins, SGPS generously pays $0.83 per share, providing a dividend yield of 2.1%. At the same time, ZTE pays only $0.07, which corresponds to a yield of 1.7%. The percentage of profit used for dividend payments is 31.9% for Jerónimo Martins and 14.9% for ZTE. Thus, both companies have sufficiently stable cash flows to easily cover their dividend obligations in the coming years.

Risk level and volatility

The analysis of risk and volatility levels shows that Jerónimo Martins, SGPS, with a beta coefficient of 0.67, is a less volatile stock compared to the S&P 500, making it a safer investment. In this context, ZTE has a beta coefficient of 0.77, which also indicates lower volatility compared to the index, but still higher than that of Jerónimo Martins.

Analysts' recommendations

Now about the analysts' recommendations: according to data from MarketBeat.com, Jerónimo Martins has one sell and one buy recommendation, while ZTE has no current buy or sell recommendations. The average rating for Jerónimo Martins is 2.00, indicating its relative attractiveness from the analysts' perspective.

Profitability

The profitability of companies also plays an important role in choosing an investment strategy.

General information about companies

Jerónimo Martins, SGPS, S.A. is a leading company operating in the food distribution and specialized retail sectors, active in countries such as Portugal, Poland, and Colombia. The main segments include:

• Retail in Portugal
• Wholesale and retail trade
• Specialized food networks

The company operates large stores under the brands Biedronka and Ara, as well as Pingo Doce supermarkets and restaurants. It also engages in various other areas, including real estate management and logistics services, making it a multifunctional player in the market.

On the other hand, ZTE Corporation offers integrated communication solutions and operates in segments such as operator networks, corporate and government services, as well as the consumer goods market. Operating in China and other regions of the world, ZTE has achieved significant success in technology, offering smartphones and a variety of electronic devices. Since its founding in 1985, the company has gained considerable recognition and continues to develop its technologies in line with global standards.

Conclusion

In conclusion, when comparing Jerónimo Martins, SGPS and ZTE, it is evident that Jerónimo Martins shows higher performance in terms of risk, revenue, and dividends. However, ZTE, with its strong profit metrics and attractive pricing, also deserves attention. Investors should carefully consider both options and conduct further analysis before making investment decisions, as each company has its own strengths and weaknesses in the competitive landscape.