Coupang vs Walmart Which Performs Better?

Coupang and Walmart are two major players in the retail industry, but they operate in different markets. Coupang is a South Korean e-commerce giant, known for its fast delivery and innovative services. On the other hand, Walmart is a multinational retail corporation based in the United States, with a vast network of physical stores and a growing online presence. Investors often compare their stocks, analyzing factors such as revenue growth, market share, and competitive advantages to determine which company is a better investment opportunity.

Coupang or Walmart?

When comparing Coupang 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 Coupang 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. Coupang 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. Coupang 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 Coupang P/E ratio at 41.61 and Walmart's P/E ratio at 38.79. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Coupang P/B ratio is 10.24 while Walmart's P/B ratio is 8.66.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Coupang has seen a 5-year revenue growth of 4.40%, while Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coupang's ROE at 25.43% and Walmart's ROE at 23.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $23.53 for Coupang and $94.50 for Walmart. Over the past year, Coupang's prices ranged from $13.51 to $26.91, with a yearly change of 99.19%. Walmart's prices fluctuated between $50.21 and $96.18, with a yearly change of 91.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.