Dollar Tree vs Walmart Which Is More Favorable?

Dollar Tree and Walmart are two retail giants that cater to different consumer segments. Dollar Tree offers a variety of value-priced goods at its namesake stores, while Walmart provides a wide range of products at competitive prices through its extensive network of supercenters. Both companies have a strong presence in the retail industry, but their stocks have seen varying performance in recent years. Investors may want to consider factors such as revenue growth, margins, and market share when comparing Dollar Tree vs Walmart stocks.

Dollar Tree or Walmart?

When comparing Dollar Tree 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 Dollar Tree 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. Dollar Tree 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. Dollar Tree 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 Dollar Tree P/E ratio at -14.99 and Walmart's P/E ratio at 38.63. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Dollar Tree P/B ratio is 2.05 while Walmart's P/B ratio is 8.63.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Dollar Tree has seen a 5-year revenue growth of 0.45%, while Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Dollar Tree's ROE at -14.09% and Walmart's ROE at 23.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $69.92 for Dollar Tree and $93.77 for Walmart. Over the past year, Dollar Tree's prices ranged from $60.49 to $151.22, with a yearly change of 149.99%. Walmart's prices fluctuated between $50.08 and $96.18, with a yearly change of 92.07%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.