Grocery Outlet vs Walmart

Grocery Outlet and Walmart are two major players in the retail industry, each offering a unique shopping experience for consumers. While both companies have experienced growth in their respective stock prices in recent years, they have distinct business models and target markets. Grocery Outlet is known for its focus on discounted, off-price merchandise, while Walmart is a one-stop shop for a wide range of products at competitive prices. Investors interested in these stocks should consider their individual strengths and weaknesses before making any investment decisions.

Grocery Outlet or Walmart?

When comparing Grocery Outlet 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 Grocery Outlet 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. Grocery Outlet has a dividend yield of -%, while Walmart has a dividend yield of 1.0%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Grocery Outlet reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.01%. 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 Grocery Outlet P/E ratio at 30.20 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. Grocery Outlet P/B ratio is 1.34 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, Grocery Outlet has seen a 5-year revenue growth of 0.30%, while Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Grocery Outlet's ROE at 4.46% and Walmart's ROE at 18.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $15.90 for Grocery Outlet and $80.52 for Walmart. Over the past year, Grocery Outlet's prices ranged from $15.18 to $29.98, with a yearly change of 97.50%. 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.