Walmart vs YETI Which Is More Profitable?

Walmart and YETI are two companies that operate in very different industries, but their stocks have been closely compared in recent years due to their strong performance in the market. Walmart, a retail giant, has seen steady growth and consistent profits, while YETI, a popular outdoor lifestyle brand, has experienced rapid expansion and an increase in demand for its premium products. Investors have been monitoring both companies closely to see how they will continue to perform in the competitive market.

Walmart or YETI?

When comparing Walmart and YETI, 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 YETI.

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 0.66%, while YETI has a dividend yield of -%. 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, YETI reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 38.79 and YETI's P/E ratio at 18.87. 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 8.66 while YETI's P/B ratio is 4.93.

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 YETI's is 1.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Walmart's ROE at 23.31% and YETI's ROE at 28.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $94.50 for Walmart and $44.19 for YETI. Over the past year, Walmart's prices ranged from $50.21 to $96.18, with a yearly change of 91.54%. YETI's prices fluctuated between $33.41 and $54.16, with a yearly change of 62.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.