Walmart vs Target Which Is More Attractive?

Walmart and Target are two retail giants that have long been competitors in the industry. Both companies have a strong presence in the market and a loyal customer base. When it comes to their stocks, investors have consistently compared the two, looking for opportunities for growth and profitability. Walmart, with its massive global presence and diverse product offerings, has traditionally been seen as a stable investment. On the other hand, Target, with its focus on trendy and upscale merchandise, has also attracted investors seeking potential high returns. In this analysis, we will delve deeper into the similarities and differences between these two retail giants and how their stocks have performed in the market.

Walmart or Target?

When comparing Walmart and Target, 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 Target.

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 Target has a dividend yield of 2.88%. 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, Target reports a 5-year dividend growth of 11.59% year and a payout ratio of 45.29%.

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 Target's P/E ratio at 15.80. 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 Target's P/B ratio is 4.91.

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 Target's is 0.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Walmart's ROE at 18.91% and Target's ROE at 33.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $84.12 for Walmart and $149.90 for Target. Over the past year, Walmart's prices ranged from $49.85 to $85.54, with a yearly change of 71.61%. Target's prices fluctuated between $107.13 and $181.86, with a yearly change of 69.76%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.