Analyzing Walmart (WMT) and The Competition

Walmart (NASDAQ:WMT) is one of 149 public companies in the “Consumer Staples Distribution & Retail” industry, but how does it contrast to its peers? We will compare Walmart to similar businesses based on the strength of its dividends, institutional ownership, analyst recommendations, valuation, earnings, risk and profitability.

Valuation and Earnings

This table compares Walmart and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Walmart	$713.16 billion	$21.89 billion	44.98
Walmart Competitors	$34.77 billion	$846.26 million	17.23

Walmart has higher revenue and earnings than its peers. Walmart is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Walmart and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Walmart	3.00%	21.83%	7.80%
Walmart Competitors	-25.86%	3.88%	2.96%

Dividends

Walmart pays an annual dividend of $0.99 per share and has a dividend yield of 0.8%. Walmart pays out 35.7% of its earnings in the form of a dividend. As a group, “Consumer Staples Distribution & Retail” companies pay a dividend yield of 3.7% and pay out 37.2% of their earnings in the form of a dividend. Walmart has increased its dividend for 53 consecutive years.

Institutional & Insider Ownership

26.8% of Walmart shares are owned by institutional investors. Comparatively, 45.0% of shares of all “Consumer Staples Distribution & Retail” companies are owned by institutional investors. 0.1% of Walmart shares are owned by company insiders. Comparatively, 19.7% of shares of all “Consumer Staples Distribution & Retail” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Walmart has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Walmart’s peers have a beta of 0.44, suggesting that their average share price is 56% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Walmart and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Walmart	0	2	39	3	3.02
Walmart Competitors	2243	8282	10072	459	2.42

Walmart currently has a consensus price target of $131.51, indicating a potential upside of 5.54%. As a group, “Consumer Staples Distribution & Retail” companies have a potential upside of 56.18%. Given Walmart’s peers higher possible upside, analysts clearly believe Walmart has less favorable growth aspects than its peers.

Summary

Walmart beats its peers on 11 of the 15 factors compared.

Walmart Company Profile

Walmart is a multinational retailer that operates discount stores, supercenters, neighborhood markets, and membership warehouse clubs. Its business includes Walmart U.S., Walmart International, and Sam’s Club. The company sells groceries and a broad range of general merchandise, including apparel, electronics, household goods, and health and wellness products. Walmart also serves customers through e-commerce, with services such as order pickup and delivery. Founded by Sam Walton in 1962, Walmart is headquartered in Bentonville, Arkansas.