Carrefour vs Walmart Which Is More Reliable?

Carrefour and Walmart are two retail giants that have captured the attention of investors worldwide. Both companies have a strong presence in the retail industry, with Carrefour being a leading European retailer and Walmart being the largest retailer in the world. As such, their stocks are often compared and analyzed by investors looking to capitalize on the potential growth of the retail sector. In this analysis, we will delve into the strengths, weaknesses, and potential for growth of both Carrefour and Walmart stocks.

Carrefour or Walmart?

When comparing Carrefour 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 Carrefour 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. Carrefour has a dividend yield of 6.76%, while Walmart has a dividend yield of 0.96%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Carrefour reports a 5-year dividend growth of 0.00% year and a payout ratio of 49.75%. 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 Carrefour P/E ratio at 1.62 and Walmart's P/E ratio at 43.56. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Carrefour P/B ratio is 0.19 while Walmart's P/B ratio is 8.02.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Carrefour has seen a 5-year revenue growth of 4.91%, while Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Carrefour's ROE at 11.14% and Walmart's ROE at 18.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $3.18 for Carrefour and $84.12 for Walmart. Over the past year, Carrefour's prices ranged from $2.77 to $3.88, with a yearly change of 40.07%. Walmart's prices fluctuated between $49.85 and $85.54, with a yearly change of 71.61%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.