Comparing Wal-Mart Stores (WMT) and Its Peers
Wal-Mart Stores (NYSE: WMT) is one of 18 public companies in the “Supermarkets & Convenience Stores” industry, but how does it weigh in compared to its competitors? We will compare Wal-Mart Stores to similar companies based on the strength of its institutional ownership, profitability, earnings, risk, analyst recommendations, valuation and dividends.
Wal-Mart Stores pays an annual dividend of $2.04 per share and has a dividend yield of 2.3%. Wal-Mart Stores pays out 49.0% of its earnings in the form of a dividend. As a group, “Supermarkets & Convenience Stores” companies pay a dividend yield of 2.0% and pay out 38.2% of their earnings in the form of a dividend. Wal-Mart Stores has raised its dividend for 42 consecutive years.
Volatility and Risk
Wal-Mart Stores has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, Wal-Mart Stores’ competitors have a beta of 0.87, meaning that their average stock price is 13% less volatile than the S&P 500.
Valuation & Earnings
This table compares Wal-Mart Stores and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Wal-Mart Stores||$485.87 billion||$13.64 billion||21.38|
|Wal-Mart Stores Competitors||$65.09 billion||$1.78 billion||368.96|
Wal-Mart Stores has higher revenue and earnings than its competitors. Wal-Mart Stores is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This table compares Wal-Mart Stores and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wal-Mart Stores Competitors||1.36%||8.35%||3.49%|
Insider and Institutional Ownership
30.2% of Wal-Mart Stores shares are held by institutional investors. Comparatively, 49.4% of shares of all “Supermarkets & Convenience Stores” companies are held by institutional investors. 51.4% of Wal-Mart Stores shares are held by company insiders. Comparatively, 30.1% of shares of all “Supermarkets & Convenience Stores” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current ratings for Wal-Mart Stores and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wal-Mart Stores Competitors||286||1081||796||35||2.26|
Wal-Mart Stores currently has a consensus target price of $85.15, indicating a potential downside of 4.27%. As a group, “Supermarkets & Convenience Stores” companies have a potential downside of 2.11%. Given Wal-Mart Stores’ competitors higher probable upside, analysts clearly believe Wal-Mart Stores has less favorable growth aspects than its competitors.
Wal-Mart Stores beats its competitors on 9 of the 15 factors compared.
Wal-Mart Stores Company Profile
Wal-Mart Stores, Inc. is engaged in the operation of retail, wholesale and other units in various formats around the world. The Company operates through three segments: Walmart U.S., Walmart International and Sam’s Club. The Walmart U.S. segment includes its mass merchant concept in the United States operating under the Walmart or Wal-Mart brands, as well as digital retail. The Walmart International segment consists of the Company’s operations outside of the United States, including various retail Websites. The Walmart International segment includes various formats divided into three categories: retail, wholesale and other. These categories consist of various formats, including supercenters, supermarkets, and warehouse clubs, such as Sam’s Clubs, cash and carry, home improvement, specialty electronics, apparel stores, drug stores and convenience stores, as well as digital retail. The Sam’s Club segment includes the warehouse membership clubs in the United States, and samsclub.com.
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