Contrasting Ollie’s Bargain Outlet (OLLI) & Wal-mart de Mexico S A B de C V (WMMVY)

Ollie’s Bargain Outlet (NASDAQ: OLLI) and Wal-mart de Mexico S A B de C V (OTCMKTS:WMMVY) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.

Analyst Ratings

This is a breakdown of current ratings and target prices for Ollie’s Bargain Outlet and Wal-mart de Mexico S A B de C V, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ollie’s Bargain Outlet 2 5 8 0 2.40
Wal-mart de Mexico S A B de C V 0 2 0 0 2.00

Ollie’s Bargain Outlet presently has a consensus target price of $68.33, indicating a potential downside of 5.75%. Given Ollie’s Bargain Outlet’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Ollie’s Bargain Outlet is more favorable than Wal-mart de Mexico S A B de C V.

Earnings & Valuation

This table compares Ollie’s Bargain Outlet and Wal-mart de Mexico S A B de C V’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ollie’s Bargain Outlet $1.08 billion 4.20 $127.59 million $1.25 58.00
Wal-mart de Mexico S A B de C V $30.18 billion 1.53 $2.11 billion $0.98 26.94

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

Dividends

Wal-mart de Mexico S A B de C V pays an annual dividend of $0.35 per share and has a dividend yield of 1.3%. Ollie’s Bargain Outlet does not pay a dividend. Wal-mart de Mexico S A B de C V pays out 35.7% of its earnings in the form of a dividend.

Risk & Volatility

Ollie’s Bargain Outlet has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500. Comparatively, Wal-mart de Mexico S A B de C V has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Profitability

This table compares Ollie’s Bargain Outlet 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
Ollie’s Bargain Outlet 12.36% 12.06% 8.81%
Wal-mart de Mexico S A B de C V 7.01% 23.53% 12.27%

Institutional & Insider Ownership

90.0% of Ollie’s Bargain Outlet shares are owned by institutional investors. Comparatively, 0.1% of Wal-mart de Mexico S A B de C V shares are owned by institutional investors. 20.3% of Ollie’s Bargain Outlet shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Ollie’s Bargain Outlet beats Wal-mart de Mexico S A B de C V on 10 of the 16 factors compared between the two stocks.

About Ollie’s Bargain Outlet

Ollie's Bargain Outlet Holdings, Inc. operates as a retailer of brand name merchandise. The company offers food products, housewares, books and stationery, bed and bath products, floor coverings, electronics, and toys; and other products, including hardware, personal health care, candy, clothing, sporting, pet and lawn, and garden products. It provides its products primarily under the Ollie's, Ollie's Bargain Outlet, Good Stuff Cheap, Ollie's Army, Real Brands Real Cheap!, Real Brands! Real Bargains, Sarasota Breeze, Steelton Tools, American Way, and Commonwealth Classics names. As of April 2, 2018, the company operated 274 store locations in 21 states across the Eastern portion of the United States. The company was formerly known as Bargain Holdings, Inc. and changed its name to Ollie's Bargain Outlet Holdings, Inc. in March 2015. Ollie's Bargain Outlet Holdings, Inc. was founded in 1982 and is headquartered in Harrisburg, Pennsylvania.

About Wal-mart de Mexico S A B de C V

Wal-Mart de México, S.A.B. de C.V. owns and operates self-service stores in Mexico and Central America. The company operates discount stores, hypermarkets, supermarkets, membership self-service wholesale stores, and pharmacies. It operates 1,820 Bodega Aurrerá discount stores, 270 Walmart hypermarkets, 94 Superama supermarkets, 162 Sam's Club membership self-service wholesale stores, and 10 Medimart pharmacies. The company also operates 522 Despensa Familiar and Palí discount stores; 94 Paiz, La Despensa de Don Juan, La Unión, and Más x Menos supermarkets; 133 Bodegas, Maxi Bodega, and Maxi Palí stores; and 29 Walmart hypermarkets in Costa Rica, Guatemala, Honduras, Nicaragua, and El Salvador. In addition, it imports and sells goods; develops properties; and manages real estate companies. The company was founded in 1958 and is headquartered in Mexico City, Mexico. Wal-Mart de México, S.A.B. de C.V. is a subsidiary of Walmart Inc.

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