Pantry (NASDAQ: PTRY) and Wal-Mart Stores (NYSE:WMT) are both non-cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitabiliy, risk, dividends and analyst recommendations.

Profitability

This table compares Pantry and Wal-Mart Stores’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pantry 1.13% 21.76% 4.39%
Wal-Mart Stores 2.79% 16.96% 6.68%

Dividends

Wal-Mart Stores pays an annual dividend of $2.04 per share and has a dividend yield of 2.7%. Pantry does not pay a dividend. Wal-Mart Stores pays out 46.3% of its earnings in the form of a dividend. Pantry has raised its dividend for 42 consecutive years.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Pantry and Wal-Mart Stores, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pantry 0 0 0 0 N/A
Wal-Mart Stores 3 16 12 0 2.29

Wal-Mart Stores has a consensus target price of $78.39, suggesting a potential upside of 3.33%. Given Wal-Mart Stores’ higher possible upside, analysts clearly believe Wal-Mart Stores is more favorable than Pantry.

Insider & Institutional Ownership

30.2% of Wal-Mart Stores shares are owned by institutional investors. 51.4% of Wal-Mart Stores shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Pantry and Wal-Mart Stores’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Pantry N/A N/A N/A N/A N/A
Wal-Mart Stores $487.51 billion 0.47 $32.97 billion $4.41 17.20

Wal-Mart Stores has higher revenue and earnings than Pantry.

Summary

Wal-Mart Stores beats Pantry on 8 of the 11 factors compared between the two stocks.

About Pantry

The Pantry, Inc. (Pantry) is an independently operated convenience store chain in the southeastern United States. As of June 26, 2014, Pantry operated 1,527 stores in 13 states under a range of banners, including Kangaroo Express, its primary operating banner. The Company stores offer a range of merchandise, fuel and ancillary products and services designed to appeal to the convenience needs of its customers, including fuel, car care products and services, tobacco products, beer, soft drinks, self-service fast food and beverages, publications, dairy products, groceries, health and beauty aids, money orders and other ancillary services. As of September 26, 2013, approximately 32% of its stores were located in coastal/resort areas, such as Jacksonville, Florida, Orlando, Florida/Disney World, Myrtle Beach, South Carolina, Charleston, South Carolina, St. Augustine, Florida, Hilton Head, South Carolina and Gulfport/Biloxi, Mississippi.

About Wal-Mart Stores

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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