Walmart vs Best Buy Which Is More Lucrative?

Walmart and Best Buy are two major retail giants with a strong presence in the market. When it comes to their stocks, both companies have faced unique challenges and opportunities. Walmart, known for its diverse offerings and extensive reach, has shown consistent growth in its stock price. On the other hand, Best Buy, a leader in consumer electronics, has seen fluctuations in its stock performance due to changing consumer preferences and the rise of online shopping. Analyzing the stocks of these two companies can provide valuable insights into the retail industry trends and market dynamics.

Walmart or Best Buy?

When comparing Walmart and Best Buy, 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 Walmart and Best Buy.

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. Walmart has a dividend yield of 0.66%, while Best Buy has a dividend yield of 4.31%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Walmart reports a 5-year dividend growth of 1.85% year and a payout ratio of 33.23%. On the other hand, Best Buy reports a 5-year dividend growth of 15.38% year and a payout ratio of 63.39%.

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 Walmart P/E ratio at 38.63 and Best Buy's P/E ratio at 14.73. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Walmart P/B ratio is 8.63 while Best Buy's P/B ratio is 5.15.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Walmart has seen a 5-year revenue growth of 0.34%, while Best Buy's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Walmart's ROE at 23.31% and Best Buy's ROE at 39.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $93.77 for Walmart and $86.00 for Best Buy. Over the past year, Walmart's prices ranged from $50.08 to $96.18, with a yearly change of 92.07%. Best Buy's prices fluctuated between $69.29 and $103.71, with a yearly change of 49.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.