Big Lots vs Walmart Which Is More Lucrative?

Big Lots and Walmart are two prominent retailers in the United States, known for their wide variety of products and competitive pricing. Both companies have a strong presence in the retail industry, with Big Lots focusing on discounted merchandise and Walmart offering a one-stop shopping experience for customers. While both stocks have shown growth over the years, investors may be drawn to Big Lots for its potential for high returns, while Walmart offers stability and consistent performance. By comparing the financials and market trends of these two companies, investors can make informed decisions on which stock may be a better investment for their portfolio.

Big Lots or Walmart?

When comparing Big Lots 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 Big Lots 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. Big Lots has a dividend yield of -%, while Walmart has a dividend yield of 0.88%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Big Lots reports a 5-year dividend growth of -24.21% year and a payout ratio of -0.06%. 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 Big Lots P/E ratio at -0.03 and Walmart's P/E ratio at 38.50. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Big Lots P/B ratio is -0.10 while Walmart's P/B ratio is 8.60.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Big Lots has seen a 5-year revenue growth of 0.26%, while Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Big Lots's ROE at -358.00% and Walmart's ROE at 23.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.42 for Big Lots and $93.04 for Walmart. Over the past year, Big Lots's prices ranged from $0.40 to $8.41, with a yearly change of 2002.50%. 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.