Big Lots (BIG) and Wal-mart de Mexico S A B de C V (WMMVY) Head to Head Review

Big Lots (NYSE: BIG) and Wal-mart de Mexico S A B de C V (OTCMKTS:WMMVY) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Profitability

How to Become a New Pot Stock Millionaire

This table compares Big Lots and Wal-mart de Mexico S A B de C V’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Big Lots 3.60% 31.12% 11.51%
Wal-mart de Mexico S A B de C V 7.10% 22.23% 11.76%

Institutional and Insider Ownership

0.1% of Wal-mart de Mexico S A B de C V shares are owned by institutional investors. 1.7% of Big Lots shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Big Lots and Wal-mart de Mexico S A B de C V’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Big Lots $5.27 billion 0.34 $189.83 million $4.45 9.68
Wal-mart de Mexico S A B de C V $26.84 billion 1.74 $1.79 billion $0.82 32.66

Wal-mart de Mexico S A B de C V has higher revenue and earnings than Big Lots. Big Lots is trading at a lower price-to-earnings ratio than Wal-mart de Mexico S A B de C V, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Big Lots has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Wal-mart de Mexico S A B de C V has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Dividends

Big Lots pays an annual dividend of $1.20 per share and has a dividend yield of 2.8%. Wal-mart de Mexico S A B de C V pays an annual dividend of $0.21 per share and has a dividend yield of 0.8%. Big Lots pays out 27.0% of its earnings in the form of a dividend. Wal-mart de Mexico S A B de C V pays out 25.6% 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. Big Lots has increased its dividend for 3 consecutive years. Big Lots is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Big Lots and Wal-mart de Mexico S A B de C V, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Big Lots 0 6 6 0 2.50
Wal-mart de Mexico S A B de C V 0 2 0 0 2.00

Big Lots currently has a consensus price target of $57.91, indicating a potential upside of 34.48%. Given Big Lots’ stronger consensus rating and higher possible upside, equities analysts plainly believe Big Lots is more favorable than Wal-mart de Mexico S A B de C V.

Summary

Big Lots beats Wal-mart de Mexico S A B de C V on 9 of the 17 factors compared between the two stocks.

Big Lots Company Profile

Big Lots, Inc., through its subsidiaries, operates as a non-traditional, discount retailer in the United States. The company offers products under various merchandising categories, such as food category that includes beverage and grocery, candy and snacks, and specialty foods departments; consumables category, which comprises health and beauty, plastics, paper, chemical, and pet departments; soft home category that consists of home décor, frames, fashion bedding, utility bedding, bath, window, decorative textile, and area rugs departments; hard home category, including small appliances, table top, food preparation, stationery, greeting cards, and home maintenance departments; and furniture category consisting of upholstery, mattress, ready-to-assemble, and case goods departments. It also provides merchandise under the seasonal category that includes lawn and garden, summer, Christmas, and other holiday departments; and electronics, toys, and accessories category, including electronics, jewelry, hosiery, toys, and infant accessories departments. As of November 7, 2017, it operated 1,428 stores in 47 states. Big Lots, Inc. was founded in 1967 and is headquartered in Columbus, Ohio.

Wal-mart de Mexico S A B de C V Company Profile

Wal Mart de Mexico SAB de CV is a Mexico-based company engaged in operating self-service stores. The Company’s segments include Mexico and Central America. In Mexico, the Company operates through Self-service, which includes the operation of discount stores, hypermarkets, wholesale-price membership stores and supermarkets, and Others, which includes department stores and real estate transactions with third parties. In Central America, it operates discount stores, supermarkets, hypermarkets, warehouse stores and wholesale-price membership stores in Costa Rica, Guatemala, Honduras, Nicaragua and El Salvador. It offers products in a range of categories, such as food, consumables, general merchandise and apparel. It offers products under various brand names, including Bodega Aurrera Express, Walmart, Sam’s Club, Superama, Suburbia and Medimart Pharmacies. The Company also operates e-commerce business in Mexico. It is controlled by Wal Mart Stores Inc.

Receive News & Ratings for Big Lots Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Big Lots and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply