Walmart vs Target
WMT
Walmart Inc. NASDAQ
$115.78 ▼ 2.71%
VS
TGT
Target Corporation NYSE
$139.57 ▼ 1.15%
Last updated: (1m ago) • WMT at $115.78, TGT at $139.57
CleaRank Financial AI • Data from TwelveData & CoinGecko
Reviewed by CleaRank editorial team. Data refreshed daily. Not financial advice.
Comparative Analysis
Target (TGT) wins this comparison due to superior valuation and stronger technical momentum. While Walmart (WMT) boasts a larger market capitalization, TGT presents a more compelling risk-reward profile based on current metrics. TGT's lower P/E ratio suggests better value, and its technical indicators signal a more robust upward trend. Investors seeking a combination of value and positive technical signals should favor TGT.
Key Differentiator
The decisive factor favoring Target (TGT) is its significantly more attractive valuation coupled with superior technical momentum. TGT offers a lower P/E ratio and stronger bullish technical signals (RSI, MACD, moving averages) compared to Walmart (WMT), presenting a more compelling investment case for both value and growth-oriented investors.
Joint Outlook
The outlook for TGT appears more positive in the near to medium term, driven by its current technical strength and attractive valuation. A continued upward trend is plausible, potentially testing higher price levels if consumer demand remains robust. For WMT, the outlook is more cautious; it may trade sideways or experience a gradual decline if its high valuation is not supported by accelerated earnings growth. A catalyst for WMT would likely involve significant cost-saving measures or a broader market rally benefiting all large-cap stocks.
Price Analysis Comparison
Valuation Metrics
| Metric | WMT | TGT |
|---|---|---|
| P/E Ratio | 41.26 | 17.11 |
| Market Cap | 920.83B | 64.13B |
| Price/Sales | 1.29 | 0.55 |
| Price/Book | 9.37 | 3.59 |
| EV/EBITDA | 22.39 | 8.95 |
| Dividend Yield | N/A | N/A |
Target (TGT) offers a clear valuation advantage over Walmart (WMT). TGT trades at a P/E of 17.11, significantly lower than WMT's 41.26. This indicates that investors are paying less for each dollar of TGT's earnings compared to WMT. Despite WMT's larger market cap, TGT's P/E suggests it is more attractively priced for value-oriented investors. The substantial difference in P/E ratios is the primary driver of TGT's win in this category.
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) exhibits slightly better profitability metrics. Its Return on Equity (ROE) stands at 22.02%, compared to WMT's 24.13%. While WMT's ROE is higher, TGT's Return on Assets (ROA) at 5.68% is competitive with WMT's 6.84%. The net profit margin for TGT (3.24%) is also marginally superior to WMT (3.14%). These figures suggest TGT is effectively utilizing its assets and equity to generate profits, with a slight edge in margin efficiency.
Earnings Reality Check
WMT
Analysis loading...
TGT
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Technical Indicators
| Indicator | WMT | TGT |
|---|---|---|
| RSI (14) | 43.50 | 70.61 |
| 50-Day MA | $124.41 | $127.66 |
| 200-Day MA | $116.80 | $108.36 |
Target (TGT) displays significantly stronger technical momentum. Its RSI is 70.61, indicating it is approaching overbought territory but within a strong uptrend, while WMT's RSI is a more neutral 43.5. TGT's MACD is positive at 3.07, signaling upward momentum, whereas WMT's MACD is negative at -1.69. TGT is trading above its 50-day ($127.66) and 200-day ($108.36) moving averages, confirming a bullish trend, while WMT is below its 50-day ($124.41) but above its 200-day ($116.80) average, suggesting a less robust trend. TGT's technicals are clearly superior.
AI Analyst Sentiment
WMT
Hold
Technical Score: 45/100
TGT
Buy
Technical Score: 65/100
Institutional positioning appears to favor TGT based on the technical indicators. TGT's strong upward momentum, evidenced by its RSI and MACD, suggests positive sentiment and potential institutional accumulation. WMT's more subdued technicals, including a lower RSI and negative MACD, indicate a less enthusiastic market sentiment. The current price action for TGT suggests it is capturing investor interest more effectively.
Risk Stratification
| Metric | WMT | TGT |
|---|---|---|
| Beta (Volatility) | 0.60 | 0.99 |
| Sharpe Ratio | 1.20 | -0.14 |
The primary risk for TGT lies in its strong upward momentum potentially leading to an overbought condition, which could precede a short-term pullback. However, its lower valuation provides a cushion. For WMT, the risk is its elevated P/E ratio, which could be vulnerable to a valuation reset if growth expectations are not met. Its weaker technicals also pose a risk of further downside or stagnation.
Comparative ProTips
- Prioritize TGT for its combination of value and strong technicals, offering a better entry point.
- Monitor WMT for potential pullbacks to more attractive valuation levels, but its current technicals are less compelling.
- Consider the retail sector's sensitivity to consumer spending; TGT's current momentum suggests it may be better positioned to capture market share.
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: $115.78
ENTRY ZONES
Conservative
$109.99
Aggressive
$115.78
RISK MANAGEMENT
STOP LOSS
$106.69
MAX LOSS
-3%
Volatility-Adjusted Stop Loss
Calculated based on volatility and technical support levels.
Profit Targets (Based on Conservative)
+5%
$115.49
+10%
$120.99
+15%
$126.49
TGT
Current: $139.57
ENTRY ZONES
Conservative
$132.59
Aggressive
$139.57
RISK MANAGEMENT
STOP LOSS
$128.61
MAX LOSS
-3%
Volatility-Adjusted Stop Loss
Calculated based on volatility and technical support levels.
Profit Targets (Based on Conservative)
+5%
$139.22
+10%
$145.85
+15%
$152.48
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.