Visa vs Walmart Which Is Superior?

Visa Inc. and Walmart Inc. are two of the largest and most widely recognized companies in their respective industries. Visa is a global leader in digital payments, providing secure and convenient transactions for consumers and businesses around the world. On the other hand, Walmart is a retail giant with a massive presence both online and in brick-and-mortar stores. Both stocks have seen steady growth over the years, with Visa benefiting from the rise of e-commerce and digital payments, while Walmart continues to dominate the retail sector. Investors looking for stability and growth potential may find both Visa and Walmart stocks attractive options for their portfolios.

Visa or Walmart?

When comparing Visa 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 Visa 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. Visa has a dividend yield of 0.63%, while Walmart has a dividend yield of 0.86%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Visa reports a 5-year dividend growth of 15.41% year and a payout ratio of 21.67%. On the other hand, Walmart reports a 5-year dividend growth of -17.10% year and a payout ratio of 33.64%.

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 Visa P/E ratio at 30.53 and Walmart's P/E ratio at 39.65. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Visa P/B ratio is 15.92 while Walmart's P/B ratio is 8.47.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Visa has seen a 5-year revenue growth of 1.11%, while Walmart's is 0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Visa's ROE at 50.68% and Walmart's ROE at 22.55%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $348.94 for Visa and $94.76 for Walmart. Over the past year, Visa's prices ranged from $252.70 to $366.54, with a yearly change of 45.05%. Walmart's prices fluctuated between $58.56 and $105.30, with a yearly change of 79.82%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.