Walmart vs Target
WMT
Walmart Inc. NASDAQ
$115.30 ▼ 0.41%
VS
TGT
Target Corporation NYSE
$140.39 ▲ 0.59%
Last updated: (1m ago) • WMT at $115.30, TGT at $140.39
CleaRank Financial AI • Data from TwelveData & CoinGecko
Reviewed by CleaRank editorial team. Data refreshed daily. Not financial advice.
Comparative Analysis
Target (TGT) emerges as the superior investment over Walmart (WMT) based on current valuation and momentum indicators. TGT presents a more attractive risk-reward profile, trading at a significantly lower P/E ratio while exhibiting stronger technical signals. Its current price action suggests a more robust upward trajectory compared to WMT, which appears to be consolidating or facing resistance. For investors seeking a blend of value and momentum, TGT offers a more compelling entry point and potential for near-term gains.
Key Differentiator
The decisive factor favoring Target (TGT) is its superior technical momentum and significantly more attractive valuation. TGT is exhibiting clear signs of an uptrend with strong buying pressure, while trading at a P/E ratio less than half that of Walmart (WMT). This combination of positive technicals and value makes TGT the clear choice for investors seeking immediate performance potential.
Joint Outlook
Target (TGT) is poised for continued strength in the near term, driven by its attractive valuation and robust technical momentum. Expect potential for further upside as momentum traders capitalize on its uptrend. Walmart (WMT) faces a more challenging outlook, with its high valuation and weak technicals suggesting consolidation or potential downside risk unless market conditions drastically improve or a significant catalyst emerges. A 6-12 month outlook favors TGT for outperformance.
Price Analysis Comparison
Valuation Metrics
| Metric | WMT | TGT |
|---|---|---|
| P/E Ratio | 40.77 | 18.46 |
| Market Cap | 918.28B | 63.39B |
| Price/Sales | 1.27 | 0.60 |
| Price/Book | 9.77 | 3.87 |
| EV/EBITDA | 22.71 | 9.48 |
| Dividend Yield | N/A | N/A |
Target (TGT) is demonstrably cheaper than Walmart (WMT) on a Price-to-Earnings basis, trading at 18.46x versus WMT's 40.77x. This significant P/E disparity suggests TGT is undervalued relative to its earnings power compared to WMT. Despite WMT's larger market capitalization, TGT's more reasonable valuation multiples, coupled with comparable revenue growth and net profit margins, make it a more attractive value proposition. Investors are paying a premium for WMT's scale, but TGT offers better earnings efficiency at its current price.
Profitability & Efficiency
| Metric | WMT | TGT |
|---|---|---|
| Rev. Growth (Qtly) | 7.30% | 6.70% |
| Profit Margin | 3.14% | 3.24% |
| Return on Equity | 24.13% | 22.02% |
| Return on Assets | 6.84% | 5.68% |
| Debt/Equity | 74.82 | 117.55 |
Target (TGT) and Walmart (WMT) exhibit strong profitability metrics. WMT leads in Return on Equity (ROE) at 24.13% compared to TGT's 22.02%. However, TGT's Return on Assets (ROA) is 5.68%, closely trailing WMT's 6.84%. Both companies maintain healthy net profit margins, with TGT at 3.24% and WMT at 3.14%. While WMT shows slightly better capital efficiency, TGT's overall profitability is robust and supports its more attractive valuation.
Earnings Reality Check
WMT
Analysis loading...
TGT
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Technical Indicators
| Indicator | WMT | TGT |
|---|---|---|
| RSI (14) | 38.20 | 73.27 |
| 50-Day MA | $124.23 | $128.01 |
| 200-Day MA | $116.87 | $108.60 |
Target (TGT) displays significantly stronger momentum signals than Walmart (WMT). TGT's RSI is at a robust 73.27, indicating strong buying pressure and approaching overbought territory, while WMT's RSI is a subdued 38.2, suggesting weakness. TGT's MACD is positive and trending upwards (3.42), contrasting with WMT's negative MACD (-1.82). TGT is trading well above its 50-day ($128.01) and 200-day ($108.60) moving averages, confirming an uptrend, whereas WMT is trading below its 50-day ($124.23) but above its 200-day ($116.87) average, indicating a more mixed technical picture. TGT's technicals strongly favor bullish continuation.
AI Analyst Sentiment
WMT
Sell
Technical Score: 35/100
TGT
Hold
Technical Score: 55/100
The technical indicators suggest a more positive market sentiment towards Target (TGT) currently. Its high RSI and positive MACD signal strong investor interest and upward momentum. Walmart (WMT), conversely, shows signs of technical weakness, with a low RSI and negative MACD, implying less immediate buying enthusiasm. The price action for TGT, trading near its 52-week high ($142.82), indicates strong recent performance, while WMT, trading significantly below its 52-week high ($135.16), suggests a less optimistic outlook from market participants.
Risk Stratification
| Metric | WMT | TGT |
|---|---|---|
| Beta (Volatility) | 0.60 | 0.99 |
| Sharpe Ratio | 1.21 | -0.15 |
The primary risk for Target (TGT) is its current RSI nearing overbought levels (73.27), which could signal a short-term pullback. However, its strong uptrend and positive MACD suggest this may be a temporary consolidation. For Walmart (WMT), the key risk is its persistent technical weakness, indicated by a low RSI (38.2) and negative MACD (-1.82), suggesting it may struggle to break out of its current trading range and could face further downside pressure. WMT's high P/E ratio also presents a valuation risk if growth expectations are not met.
Comparative ProTips
- Prioritize TGT for its current valuation discount and strong upward momentum.
- Monitor TGT's RSI for potential entry points on any short-term pullbacks, but maintain a bullish stance given the overall trend.
- Consider WMT only if a significant valuation reset occurs or if its technicals show a clear reversal pattern.
Monte Carlo Projection (10yr)
Actionable Trade Plans
Compare entry, exit, and risk management levels for both assets
Select Your Trade Bias
Risk Tolerance
Conservative 3% Aggressive
Portfolio Value
$ ✎
Position Size: $200 - $300 per asset
WMT
Current: $115.30
ENTRY ZONES
Conservative
$117.61
Aggressive
$115.30
RISK MANAGEMENT
STOP LOSS
$121.13
MAX LOSS
-3%
Volatility-Adjusted Stop Loss
Calculated based on volatility and technical support levels.
Profit Targets (Based on Conservative)
+5%
$111.73
+10%
$105.85
+15%
$99.97
TGT
Current: $140.39
ENTRY ZONES
Conservative
$143.20
Aggressive
$140.39
RISK MANAGEMENT
STOP LOSS
$147.49
MAX LOSS
-3%
Volatility-Adjusted Stop Loss
Calculated based on volatility and technical support levels.
Profit Targets (Based on Conservative)
+5%
$136.04
+10%
$128.88
+15%
$121.72
Calculate Your Trade
ℹ️ Disclaimer
This comparison involves assets with varying risk profiles. The content is for educational purposes only. Identifying the stronger asset is based on relative strength (RS) and technical convergence. Past correlation does not guarantee future lockstep movement. Trading involves risk of loss. Note: The AI favored TGT based on current technical setup. This is valid for the specified timeframe only.