Smiths vs Walmart Which Is More Lucrative?

Smiths vs Walmart stocks present two distinct investment opportunities. Smiths, a smaller, niche retailer known for high-quality products, might appeal to those seeking growth potential and a more personalized shopping experience. On the other hand, Walmart, a retail giant with a global presence and strong financials, offers stability and consistent returns. Investors should consider factors like market trends, company performance, and personal investment goals when deciding between the two options.

Smiths or Walmart?

When comparing Smiths 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 Smiths 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. Smiths has a dividend yield of 2.57%, while Walmart has a dividend yield of 0.88%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Smiths reports a 5-year dividend growth of -3.33% year and a payout ratio of 62.66%. 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 Smiths P/E ratio at 26.35 and Walmart's P/E ratio at 38.50. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Smiths P/B ratio is 2.75 while Walmart's P/B ratio is 8.60.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Smiths has seen a 5-year revenue growth of 0.06%, while Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Smiths's ROE at 10.75% and Walmart's ROE at 23.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $22.35 for Smiths and $93.04 for Walmart. Over the past year, Smiths's prices ranged from $19.34 to $24.49, with a yearly change of 26.63%. Walmart's prices fluctuated between $50.51 and $96.18, with a yearly change of 90.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.