Walgreens Boots Alliance (NASDAQ:WBA) vs. China Jo-Jo Drugstores (NASDAQ:CJJD) Critical Contrast

Walgreens Boots Alliance (NASDAQ:WBA) and China Jo-Jo Drugstores (NASDAQ:CJJD) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Valuation and Earnings

This table compares Walgreens Boots Alliance and China Jo-Jo Drugstores’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Walgreens Boots Alliance $131.54 billion 0.37 $5.02 billion $6.02 8.92
China Jo-Jo Drugstores $107.55 million 0.34 -$930,000.00 N/A N/A

Walgreens Boots Alliance has higher revenue and earnings than China Jo-Jo Drugstores.

Dividends

Walgreens Boots Alliance pays an annual dividend of $1.76 per share and has a dividend yield of 3.3%. China Jo-Jo Drugstores does not pay a dividend. Walgreens Boots Alliance pays out 29.2% of its earnings in the form of a dividend. Walgreens Boots Alliance has raised its dividend for 43 consecutive years.

Profitability

This table compares Walgreens Boots Alliance and China Jo-Jo Drugstores’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Walgreens Boots Alliance 3.53% 22.08% 8.22%
China Jo-Jo Drugstores -0.81% -5.46% -1.30%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Walgreens Boots Alliance and China Jo-Jo Drugstores, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Walgreens Boots Alliance 3 10 4 0 2.06
China Jo-Jo Drugstores 0 0 0 0 N/A

Walgreens Boots Alliance presently has a consensus price target of $64.50, indicating a potential upside of 20.16%. Given Walgreens Boots Alliance’s higher possible upside, analysts plainly believe Walgreens Boots Alliance is more favorable than China Jo-Jo Drugstores.

Institutional and Insider Ownership

62.2% of Walgreens Boots Alliance shares are held by institutional investors. Comparatively, 18.2% of China Jo-Jo Drugstores shares are held by institutional investors. 15.7% of Walgreens Boots Alliance shares are held by company insiders. Comparatively, 31.3% of China Jo-Jo Drugstores shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Walgreens Boots Alliance has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, China Jo-Jo Drugstores has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500.

Summary

Walgreens Boots Alliance beats China Jo-Jo Drugstores on 12 of the 14 factors compared between the two stocks.

Walgreens Boots Alliance Company Profile

Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and wellbeing company. It operates through three segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. The Retail Pharmacy USA segment sells prescription drugs and an assortment of retail products, including health, beauty, personal care, consumable, and general merchandise products through its retail drugstores and convenient care clinics. It also provides specialty pharmacy services and mail services; and manages in-store clinics. As of August 31, 2018, this segment operated 9,560 retail stores under the Walgreens and Duane Reade brands in the United States; and 7 specialty pharmacies, as well as approximately 400 in-store clinic locations. The Retail Pharmacy International segment sells prescription drugs; and health, beauty, personal care, and other consumer products through its pharmacy-led health and beauty stores and optical practices, as well as through boots.com and an integrated mobile application. This segment operated 4,767 retail stores under the Boots, Benavides, and Ahumada in the United Kingdom, Thailand, Norway, the Republic of Ireland, the Netherlands, Mexico, and Chile; and 618 optical practices, including 167 on a franchise basis. The Pharmaceutical Wholesale segment engages in the wholesale and distribution of specialty and generic pharmaceuticals, health and beauty products, and home healthcare supplies and equipment, as well as provides related services to pharmacies and other healthcare providers. This segment operates in the United Kingdom, Germany, France, Turkey, Spain, the Netherlands, Egypt, Norway, Romania, the Czech Republic, and Lithuania. The company has a strategic partnership with Microsoft Corporation. Walgreens Boots Alliance, Inc. was founded in 1901 and is based in Deerfield, Illinois.

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.

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