Weis Markets (NYSE:WMK) vs. Walmart (NYSE:WMT) Critical Comparison

Weis Markets (NYSE:WMK) and Walmart (NYSE:WMT) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Insider & Institutional Ownership

26.8% of Walmart shares are held by institutional investors. 27.0% of Weis Markets shares are held by insiders. Comparatively, 45.6% of Walmart shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Weis Markets pays an annual dividend of $1.36 per share and has a dividend yield of 1.9%. Walmart pays an annual dividend of $0.94 per share and has a dividend yield of 1.0%. Weis Markets pays out 34.1% of its earnings in the form of a dividend. Walmart pays out 40.2% 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 raised its dividend for 53 consecutive years. Weis Markets is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Weis Markets has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, Walmart has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Weis Markets and Walmart, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weis Markets	0	0	0	0	0.00
Walmart	0	2	29	1	2.97

Walmart has a consensus price target of $106.50, suggesting a potential upside of 9.33%. Given Walmart’s stronger consensus rating and higher possible upside, analysts plainly believe Walmart is more favorable than Weis Markets.

Profitability

This table compares Weis Markets and Walmart’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Weis Markets	2.24%	7.49%	5.16%
Walmart	2.75%	21.76%	7.79%

Earnings & Valuation

This table compares Weis Markets and Walmart”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weis Markets	$4.77 billion	0.41	$109.94 million	$3.99	18.13
Walmart	$680.99 billion	1.14	$19.44 billion	$2.34	41.63

Walmart has higher revenue and earnings than Weis Markets. Weis Markets is trading at a lower price-to-earnings ratio than Walmart, indicating that it is currently the more affordable of the two stocks.

Summary

Walmart beats Weis Markets on 15 of the 18 factors compared between the two stocks.

About Weis Markets

Weis Markets, Inc. engages in the retail sale of food through a chain of supermarkets in Pennsylvania and surrounding states. The company’s retail food stores sell groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services, deli products, prepared foods, bakery products, beer and wine, and fuel; and general merchandise items, such as health and beauty care, and household products. It operates stores in Delaware, Maryland, New Jersey, New York, Pennsylvania, Virginia, and West Virginia primarily under the Weis Markets name, as well as Weis, Weis 2 Go, Weis Great Meals Start Here, Weis Gas-n-Go, and Weis Nutri-Facts. Weis Markets, Inc. was founded in 1912 and is based in Sunbury, Pennsylvania.

About Walmart

Walmart Inc. engages in the operation of retail, wholesale, other units, and eCommerce worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, and discount stores under Walmart and Walmart Neighborhood Market brands; membership-only warehouse clubs; ecommerce websites, such as walmart.com.mx, walmart.ca, flipkart.com, PhonePe and other sites; and mobile commerce applications. The company offers grocery and consumables, including dairy, meat, bakery, deli, produce, dry, chilled or frozen packaged foods, alcoholic and nonalcoholic beverages, floral, snack foods, candy, other grocery items, health and beauty aids, paper goods, laundry and home care, baby care, pet supplies, and other consumable items; fuel, tobacco and other categories. It is also involved in the provision of health and wellness products covering pharmacy, optical and hearing services, and over-the-counter drugs and other medical products; and home and apparel including home improvement, outdoor living, gardening, furniture, apparel, jewelry, tools and power equipment, housewares, toys, seasonal items, mattresses and tire and battery centers. In addition, the company offers consumer electronics and accessories, software, video games, office supplies, appliances, and third-party gift cards. Further, it operates digital payment platforms; and offers financial services and related products, including money transfers, bill payments, money orders, check cashing, prepaid access, co-branded credit cards, installment lending, and earned wage access. Additionally, the company markets lines of merchandise under private brands, including Allswell, Athletic Works, Equate, and Free Assembly. The company was formerly known as Wal-Mart Stores, Inc. and changed its name to Walmart Inc. in February 2018. Walmart Inc. was founded in 1945 and is based in Bentonville, Arkansas.