Target Corporation (TGT) vs Walmart Inc. (WMT)

Target Corporation and Walmart Inc. are both Discount Stores companies. Walmart Inc. is the larger, with a market value of $826.5B against $70.9B — 11.7× the size. Target Corporation trades at the lower P/E: 16.2× against 37.5×. Walmart Inc. grew revenue faster over the last twelve months: 6.16% against 1.95%. Target Corporation has the higher net margin (4.08% vs 3.00%) and the higher return on invested capital (13.6% vs 13.5%). Both pay a dividend; Target Corporation yields more (2.92% vs 1.18%). Across the 23 metrics below, Target Corporation leads on 16 and Walmart Inc. on 7.

Valuation

Metric TGT WMT Discount Stores median
P/E 16.19 37.52 19.50
P/S 0.66 1.12 1.08
P/B 3.99 7.91 5.33
Price to free cash flow 15.98 60.34 32.67
EV/EBITDA 8.82 18.39 12.36
EV/Sales 0.75 1.18 1.03
Earnings yield 6.18% 2.67% 4.05%
Free cash flow yield 6.26% 1.66% 2.99%

Profitability

Metric TGT WMT Discount Stores median
Gross margin 29.30% 25.23% 27.27%
Operating margin 5.59% 4.39% 4.45%
Net margin 4.08% 3.00% 3.02%
Free cash flow margin 4.14% 1.86% 3.35%
Return on equity 26.41% 21.96% 20.83%
Return on assets 7.38% 7.82% 7.60%
Return on invested capital 13.55% 13.51% 13.21%

Growth

Metric TGT WMT Discount Stores median
Revenue growth (TTM) 1.95% 6.16% 8.64%
EPS growth (last fiscal year) (8.24%) 13.28% 11.39%
Revenue growth, 5-year CAGR 2.29% 4.99% 4.99%
Net income growth, 5-year CAGR (3.24%) 10.14% 0.00%

Health

Metric TGT WMT Discount Stores median
Debt to equity 0.86 0.54 0.39
Current ratio 0.99 0.77 1.02
Net debt to EBITDA 1.33 0.91 0.59

Dividend

Metric TGT WMT Discount Stores median
Dividend yield 2.92% 1.18% 1.83%
Payout ratio 0.48 0.44 0.27

Size

Metric TGT WMT Discount Stores median
Market cap 70.88b 826.54b 16.66b

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