Walmart vs Woolworths Which Is More Attractive?

Walmart and Woolworths are two major retail giants that have a significant impact on the stock market. Walmart, the largest retailer in the world, has a strong presence in the United States and internationally, while Woolworths is a leading retailer in Australia and New Zealand. Both companies have diverse product offerings and loyal customer bases, but their stocks have performed differently in recent years. Investors closely monitor the financial performance of these companies to make informed decisions about their stock investments.

Walmart or Woolworths?

When comparing Walmart and Woolworths, 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 Woolworths.

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 0.65%, while Woolworths has a dividend yield of 5.14%. 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, Woolworths reports a 5-year dividend growth of -4.41% year and a payout ratio of -520.71%.

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 39.10 and Woolworths's P/E ratio at -121.28. 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 8.73 while Woolworths's P/B ratio is 6.34.

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 Woolworths's is 0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Walmart's ROE at 23.31% and Woolworths's ROE at -5.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $95.33 for Walmart and $17.79 for Woolworths. Over the past year, Walmart's prices ranged from $49.85 to $96.18, with a yearly change of 92.95%. Woolworths's prices fluctuated between $17.79 and $25.26, with a yearly change of 41.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.