Reviewing Wal-Mart de Mexico SAB de CV (OTCMKTS:WMMVY) & Metro (OTCMKTS:MTRAF)

Metro (OTCMKTS:MTRAF) and Wal-Mart de Mexico SAB de CV (OTCMKTS:WMMVY) are both large-cap consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Profitability

This table compares Metro and Wal-Mart de Mexico SAB de CV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Metro	4.01%	14.23%	6.82%
Wal-Mart de Mexico SAB de CV	4.90%	21.23%	10.12%

Earnings and Valuation

This table compares Metro and Wal-Mart de Mexico SAB de CV”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Metro	$15.74 billion	0.84	$727.05 million	$3.04	20.94
Wal-Mart de Mexico SAB de CV	$52.76 billion	0.89	$2.60 billion	$1.60	16.89

Wal-Mart de Mexico SAB de CV has higher revenue and earnings than Metro. Wal-Mart de Mexico SAB de CV is trading at a lower price-to-earnings ratio than Metro, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Metro and Wal-Mart de Mexico SAB de CV, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Metro	0	1	2	0	2.67
Wal-Mart de Mexico SAB de CV	2	2	0	0	1.50

Wal-Mart de Mexico SAB de CV has a consensus price target of $42.00, suggesting a potential upside of 55.44%. Given Wal-Mart de Mexico SAB de CV’s higher probable upside, analysts plainly believe Wal-Mart de Mexico SAB de CV is more favorable than Metro.

Dividends

Metro pays an annual dividend of $1.18 per share and has a dividend yield of 1.9%. Wal-Mart de Mexico SAB de CV pays an annual dividend of $0.80 per share and has a dividend yield of 3.0%. Metro pays out 38.8% of its earnings in the form of a dividend. Wal-Mart de Mexico SAB de CV pays out 50.0% 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.

Summary

Wal-Mart de Mexico SAB de CV beats Metro on 8 of the 13 factors compared between the two stocks.

About Metro

Metro Inc., through its subsidiaries, operates as a retailer, franchisor, distributor, and manufacturer in the food and pharmaceutical sectors in Canada. The company operates supermarkets, discount, neighborhood, and specialty stores that provide fresh and grocery products, baked goods, prepared food products, meats, dairy products, fruits and vegetables, frozen food products, bakery products, delicatessen items, and pastries. It also manufactures ready-to-eat meals, salads, dips, pastries, pies, breads, and cakes; generic drugs under Pro Doc trademark; and provides online grocery shopping services. In addition, the company offers its private label food products under Irresistibles, Selection, Our Harvest Best, Lucky Koi, Life Smart, Adonis, Phoenicia, and Premiere Moisson brands; and private label drug products comprising beauty and cosmetic products, over-the-counter medications, and personal care products, sold under the Personnelle brand name. It operates a network of food stores under various banners, including Metro, Metro Plus, Adonis, Super C, Marché Richelieu, Marché Ami, Première Moisson, Les 5 Saisons, and Food Basics, as well as drugstores primarily under the PJC Jean Coutu, PJC Santé, PJC Santé Beauté, Brunet, Brunet Plus, Brunet Clinique, Clini Plus, Metro Pharmacy, and Food Basics Pharmacy banners. The company was founded in 1947 and is headquartered in Montréal, Canada.

About Wal-Mart de Mexico SAB de CV

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 warehouses and stores, hypermarkets, supermarkets, and membership self-service wholesale stores. It operates Bodega Aurrerá discount stores, Walmart hypermarkets, Walmart Express supermarkets, and Sam’s Club membership self-service wholesale stores. The company operates Despensa Familiar and Palí discount stores; Paiz, La Despensa de Don Juan, La Unión, and Más x Menos supermarkets; Bodegas, Maxi Bodega, and Maxi Palí stores; and 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. operates as a subsidiary of Intersalt, S. De R.l. De C.v.