Canadian Tire vs Walmart

Canadian Tire and Walmart are two retail giants with a strong presence in the Canadian market. Both companies have been making significant investments in e-commerce and expanding their product offerings to cater to changing consumer preferences. Canadian Tire has a long history in Canada, while Walmart is known for its global presence. Investors may consider factors such as brand reputation, financial performance, and growth prospects when evaluating the stocks of these two companies. Let's delve deeper into the comparison of Canadian Tire vs Walmart stocks to assess the potential investment opportunities.

Canadian Tire or Walmart?

When comparing Canadian Tire 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 Canadian Tire 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. Canadian Tire has a dividend yield of 4.44%, while Walmart has a dividend yield of 1.0%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Canadian Tire reports a 5-year dividend growth of 11.12% year and a payout ratio of 93.42%. 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 Canadian Tire P/E ratio at 23.08 and Walmart's P/E ratio at 42.23. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Canadian Tire P/B ratio is 1.56 while Walmart's P/B ratio is 7.78.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Canadian Tire has seen a 5-year revenue growth of 0.37%, while Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canadian Tire's ROE at 7.00% and Walmart's ROE at 18.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $114.84 for Canadian Tire and $80.52 for Walmart. Over the past year, Canadian Tire's prices ranged from $91.50 to $120.47, with a yearly change of 31.66%. Walmart's prices fluctuated between $49.85 and $81.82, with a yearly change of 64.14%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.