Wal-Mart Stores (NYSE: WMT) and Cresud S.A.C.I.F. y A. (NASDAQ:CRESY) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.

Insider & Institutional Ownership

29.9% of Wal-Mart Stores shares are owned by institutional investors. Comparatively, 24.9% of Cresud S.A.C.I.F. y A. shares are owned by institutional investors. 51.4% of Wal-Mart Stores shares are owned by company insiders. Comparatively, 36.2% of Cresud S.A.C.I.F. y A. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Wal-Mart Stores and Cresud S.A.C.I.F. y A.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Wal-Mart Stores $490.01 billion 0.48 $32.87 billion $4.16 18.88
Cresud S.A.C.I.F. y A. N/A N/A N/A N/A N/A

Wal-Mart Stores has higher revenue and earnings than Cresud S.A.C.I.F. y A..

Analyst Ratings

This is a breakdown of current ratings and target prices for Wal-Mart Stores and Cresud S.A.C.I.F. y A., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wal-Mart Stores 2 17 14 0 2.36
Cresud S.A.C.I.F. y A. 0 0 0 0 N/A

Wal-Mart Stores presently has a consensus price target of $80.47, suggesting a potential upside of 2.45%. Given Wal-Mart Stores’ higher possible upside, research analysts clearly believe Wal-Mart Stores is more favorable than Cresud S.A.C.I.F. y A..

Volatility and Risk

Wal-Mart Stores has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, Cresud S.A.C.I.F. y A. has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500.

Profitability

This table compares Wal-Mart Stores and Cresud S.A.C.I.F. y A.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wal-Mart Stores 2.60% 16.87% 6.61%
Cresud S.A.C.I.F. y A. 0.90% -4.41% -0.47%

Dividends

Wal-Mart Stores pays an annual dividend of $2.04 per share and has a dividend yield of 2.6%. Cresud S.A.C.I.F. y A. does not pay a dividend. Wal-Mart Stores pays out 49.0% of its earnings in the form of a dividend. Wal-Mart Stores has increased its dividend for 42 consecutive years.

Summary

Wal-Mart Stores beats Cresud S.A.C.I.F. y A. on 10 of the 12 factors compared between the two stocks.

About Wal-Mart Stores

Wal-Mart Stores, Inc. is engaged in the operation of retail, wholesale and other units in various formats around the world. The Company operates through three segments: Walmart U.S., Walmart International and Sam’s Club. The Walmart U.S. segment includes its mass merchant concept in the United States operating under the Walmart or Wal-Mart brands, as well as digital retail. The Walmart International segment consists of the Company’s operations outside of the United States, including various retail Websites. The Walmart International segment includes various formats divided into three categories: retail, wholesale and other. These categories consist of various formats, including supercenters, supermarkets, and warehouse clubs, such as Sam’s Clubs, cash and carry, home improvement, specialty electronics, apparel stores, drug stores and convenience stores, as well as digital retail. The Sam’s Club segment includes the warehouse membership clubs in the United States, and samsclub.com.

About Cresud S.A.C.I.F. y A.

Cresud Sociedad Anonima Comercial, Inmobiliaria, Financiera y Agropecuaria is an agricultural company engaged in the production of basic agricultural commodities with presence in the agricultural sector of Brazil, through its investment in Brasilagro, as well as in other Latin American countries. In addition, the Company leases lands to third parties and perform agency and agro-industrial services, including a meat packing plant. It operates in two businesses areas, namely, Agricultural and Investment and Development Properties. Its Agricultural business comprises eight segments: Crops, Cattle, Dairy, Sugarcane, Agricultural Rentals and Services, Land Transformation and Sales, Agro-industrial and Others. The Company’s Investment and Development Properties comprises six segments: Shopping Center Properties, Offices, Sales and Developments, Hotels, International, and Financial Operations and Others. The Company’s main crops include soybean, wheat, corn and sunflower.

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