Metro vs Walmart

Metro Inc. and Walmart Inc. are two retail giants that dominate the grocery industry in North America. Both companies have seen fluctuations in their stock prices over the years as they navigate a competitive market. Metro, a Canadian-based company, has a strong presence in urban areas, while Walmart, a global powerhouse, has a widespread reach across the United States and beyond. Investors closely track the performances of these two companies to gauge the health of the retail sector and make informed decisions about their portfolios.

Metro or Walmart?

When comparing Metro 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 Metro 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. Metro has a dividend yield of 1.57%, while Walmart has a dividend yield of 1.0%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Metro reports a 5-year dividend growth of 9.90% year and a payout ratio of 31.08%. 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 Metro P/E ratio at 20.31 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. Metro P/B ratio is 2.76 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, Metro has seen a 5-year revenue growth of 0.48%, while Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Metro's ROE at 13.62% and Walmart's ROE at 18.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $61.24 for Metro and $80.52 for Walmart. Over the past year, Metro's prices ranged from $49.26 to $63.93, with a yearly change of 29.78%. 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.