Financial Survey: Wal-mart de Mexico S A B de C V (WMMVY) vs. Walmart (WMT)

Wal-mart de Mexico S A B de C V (OTCMKTS: WMMVY) and Walmart (NYSE:WMT) are both large-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Dividends

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Wal-mart de Mexico S A B de C V pays an annual dividend of $0.21 per share and has a dividend yield of 0.8%. Walmart pays an annual dividend of $2.08 per share and has a dividend yield of 2.4%. Wal-mart de Mexico S A B de C V pays out 25.6% of its earnings in the form of a dividend. Walmart pays out 47.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Walmart has increased its dividend for 43 consecutive years. Walmart is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Wal-mart de Mexico S A B de C V has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Walmart has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Profitability

This table compares Wal-mart de Mexico S A B de C V and Walmart’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wal-mart de Mexico S A B de C V 7.10% 22.23% 11.76%
Walmart 1.97% 16.85% 6.51%

Valuation & Earnings

This table compares Wal-mart de Mexico S A B de C V and Walmart’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wal-mart de Mexico S A B de C V $26.84 billion 1.74 $1.79 billion $0.82 32.66
Walmart $500.34 billion 0.51 $9.86 billion $4.42 19.61

Walmart has higher revenue and earnings than Wal-mart de Mexico S A B de C V. Walmart is trading at a lower price-to-earnings ratio than Wal-mart de Mexico S A B de C V, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for Wal-mart de Mexico S A B de C V and Walmart, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wal-mart de Mexico S A B de C V 0 2 0 0 2.00
Walmart 0 17 13 0 2.43

Walmart has a consensus price target of $101.12, suggesting a potential upside of 16.64%. Given Walmart’s stronger consensus rating and higher probable upside, analysts plainly believe Walmart is more favorable than Wal-mart de Mexico S A B de C V.

Institutional and Insider Ownership

0.1% of Wal-mart de Mexico S A B de C V shares are owned by institutional investors. Comparatively, 30.0% of Walmart shares are owned by institutional investors. 51.4% of Walmart shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Walmart beats Wal-mart de Mexico S A B de C V on 10 of the 17 factors compared between the two stocks.

Wal-mart de Mexico S A B de C V Company Profile

Wal Mart de Mexico SAB de CV is a Mexico-based company engaged in operating self-service stores. The Company’s segments include Mexico and Central America. In Mexico, the Company operates through Self-service, which includes the operation of discount stores, hypermarkets, wholesale-price membership stores and supermarkets, and Others, which includes department stores and real estate transactions with third parties. In Central America, it operates discount stores, supermarkets, hypermarkets, warehouse stores and wholesale-price membership stores in Costa Rica, Guatemala, Honduras, Nicaragua and El Salvador. It offers products in a range of categories, such as food, consumables, general merchandise and apparel. It offers products under various brand names, including Bodega Aurrera Express, Walmart, Sam’s Club, Superama, Suburbia and Medimart Pharmacies. The Company also operates e-commerce business in Mexico. It is controlled by Wal Mart Stores Inc.

Walmart Company Profile

Walmart Inc., formerly Wal-Mart Stores, Inc., is engaged in the operation of retail, wholesale and other units in various formats around the world. The Company offers an assortment of merchandise and services at everyday low prices (EDLP). The Company operates through three segments: Walmart U.S., Walmart International and Sam’s Club. The Walmart U.S. segment includes the Company’s mass merchant concept in the United States operating under the Walmart 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 Sam’s Club segment includes the warehouse membership clubs in the United States, as well as samsclub.com. The Company operates approximately 11,600 stores under 59 banners in 28 countries and e-commerce Websites in 11 countries.

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