Walmart vs Western Union

Walmart and Western Union are two well-known companies in the retail and financial services sectors, respectively. Walmart, a retail giant, has a strong presence in the market with its stores offering a wide range of products at competitive prices. On the other hand, Western Union is a leading provider of money transfer services globally. Investors looking to diversify their portfolios may consider investing in either Walmart or Western Union stocks to capitalize on the growth potential of these companies in their respective industries.

Walmart or Western Union?

When comparing Walmart and Western Union, 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 Western Union.

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 Western Union has a dividend yield of 10.0%. 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, Western Union reports a 5-year dividend growth of 4.34% year and a payout ratio of 57.18%.

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 Western Union's P/E ratio at 6.84. 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 Western Union's P/B ratio is 9.03.

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 Western Union's is -0.05%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Walmart's ROE at 18.91% and Western Union's ROE at 120.48%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $80.52 for Walmart and $11.75 for Western Union. Over the past year, Walmart's prices ranged from $49.85 to $81.82, with a yearly change of 64.14%. Western Union's prices fluctuated between $10.92 and $14.19, with a yearly change of 29.95%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.