Walmart vs Campbell Soup Which Is More Promising?

Walmart and Campbell Soup are two prominent companies in the retail and food industries, each with a unique market presence and performance. Walmart, the world's largest retailer, has seen consistent growth in recent years due to its strong e-commerce strategy and expanding product offerings. On the other hand, Campbell Soup, a leading manufacturer of packaged foods, has faced challenges in adapting to changing consumer preferences and market dynamics. Investors may be interested in comparing the stock performance of these two companies to make informed investment decisions.

Walmart or Campbell Soup?

When comparing Walmart and Campbell Soup, 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 Campbell Soup.

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 0.96%, while Campbell Soup has a dividend yield of 3.31%. 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 41.18%. On the other hand, Campbell Soup reports a 5-year dividend growth of 1.12% year and a payout ratio of 78.48%.

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 43.56 and Campbell Soup's P/E ratio at 23.52. 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 8.02 while Campbell Soup's P/B ratio is 3.52.

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 Campbell Soup's is 0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Walmart's ROE at 18.91% and Campbell Soup's ROE at 14.81%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $84.12 for Walmart and $44.63 for Campbell Soup. Over the past year, Walmart's prices ranged from $49.85 to $85.54, with a yearly change of 71.61%. Campbell Soup's prices fluctuated between $39.65 and $52.81, with a yearly change of 33.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.