Verizon vs Walmart Which Is More Lucrative?

Verizon and Walmart are two major players in their respective industries, telecommunications and retail. Both companies have a strong presence in the stock market, with Verizon being a leading provider of wireless services and Walmart being one of the largest retailers in the world. Investors often compare the performance of these two stocks to determine which may be a better investment. Understanding the financial health, growth potential, and market trends of Verizon vs Walmart stocks can help investors make informed decisions about their portfolios.

Verizon or Walmart?

When comparing Verizon 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 Verizon 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. Verizon has a dividend yield of 6.32%, while Walmart has a dividend yield of 0.66%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Verizon reports a 5-year dividend growth of 2.02% year and a payout ratio of 114.26%. 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 Verizon P/E ratio at 18.22 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. Verizon P/B ratio is 1.85 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, Verizon has seen a 5-year revenue growth of 0.00%, while Walmart's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Verizon's ROE at 10.33% and Walmart's ROE at 23.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $42.07 for Verizon and $93.77 for Walmart. Over the past year, Verizon's prices ranged from $36.46 to $45.36, with a yearly change of 24.41%. 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.