Campbell Soup vs Walmart Which Is Stronger?

Campbell Soup and Walmart are two well-known companies in the consumer goods industry, but their stocks have performed quite differently in recent years. Campbell Soup, a leading producer of soup and other food products, has faced challenges with changing consumer preferences and increased competition. On the other hand, Walmart, a retail giant known for its low prices and wide selection of goods, has consistently grown its market share and expanded its e-commerce capabilities. Investors interested in consumer goods stocks may find these two companies worth comparing for potential investment opportunities.

Campbell Soup or Walmart?

When comparing Campbell Soup 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 Campbell Soup 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. Campbell Soup has a dividend yield of 3.34%, while Walmart has a dividend yield of 0.95%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Campbell Soup reports a 5-year dividend growth of 1.12% year and a payout ratio of 78.48%. On the other hand, Walmart reports a 5-year dividend growth of 1.85% year and a payout ratio of 41.18%.

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 Campbell Soup P/E ratio at 17.07 and Walmart's P/E ratio at 44.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Campbell Soup P/B ratio is 2.55 while Walmart's P/B ratio is 8.15.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Campbell Soup has seen a 5-year revenue growth of 0.08%, while Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Campbell Soup's ROE at 14.81% and Walmart's ROE at 18.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $43.85 for Campbell Soup and $84.77 for Walmart. Over the past year, Campbell Soup's prices ranged from $39.65 to $52.81, with a yearly change of 33.19%. Walmart's prices fluctuated between $49.85 and $85.79, with a yearly change of 72.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.