Walmart vs Kroger

Walmart and Kroger are two retail giants that have been competing in the stock market for years. While Walmart is the world's largest retailer, Kroger is a major player in the grocery industry. Both companies have seen their stocks fluctuate as they navigate the ever-changing retail landscape. Investors are constantly comparing the two stocks, analyzing factors such as sales growth, profitability, and market share. Understanding the differences and similarities between Walmart and Kroger stocks is essential for making informed investment decisions in the retail sector.

Walmart or Kroger?

When comparing Walmart and Kroger, 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 Kroger.

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 1.0%, while Kroger has a dividend yield of 2.12%. 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, Kroger reports a 5-year dividend growth of 15.72% year and a payout ratio of 30.05%.

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 42.23 and Kroger's P/E ratio at 14.52. 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 7.78 while Kroger's P/B ratio is 3.24.

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 Kroger's is 0.40%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Walmart's ROE at 18.91% and Kroger's ROE at 23.42%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $80.52 for Walmart and $55.19 for Kroger. Over the past year, Walmart's prices ranged from $49.85 to $81.82, with a yearly change of 64.14%. Kroger's prices fluctuated between $42.10 and $58.34, with a yearly change of 38.57%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.