Baidu vs Walmart Which Is Superior?

Baidu Inc. and Walmart Inc. are two of the most prominent companies in their respective industries, with Baidu being a Chinese multinational technology company specializing in internet-related services and products, while Walmart is a multinational retail corporation. Both companies have seen significant growth and success in recent years, attracting the attention of investors worldwide. This comparison will analyze the stocks of these two companies, examining their financial performance, market trends, and potential for future growth.

Baidu or Walmart?

When comparing Baidu and Walmart, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Baidu and Walmart.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Baidu has a dividend yield of -%, while Walmart has a dividend yield of 0.66%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Baidu reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Walmart reports a 5-year dividend growth of 1.85% year and a payout ratio of 33.23%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Baidu P/E ratio at 8.93 and Walmart's P/E ratio at 38.44. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Baidu P/B ratio is 0.63 while Walmart's P/B ratio is 8.58.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Baidu has seen a 5-year revenue growth of 8.97%, while Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Baidu's ROE at 7.30% and Walmart's ROE at 23.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $88.80 for Baidu and $94.09 for Walmart. Over the past year, Baidu's prices ranged from $78.95 to $120.25, with a yearly change of 52.31%. Walmart's prices fluctuated between $50.51 and $96.18, with a yearly change of 90.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.