KHC vs WMT

For growth investors, Walmart Inc.

(WMT) is the stronger pick with 4. 7% revenue growth year-over-year, versus -3. 5% for The Kraft Heinz Company (KHC). Walmart Inc. (WMT) offers the better valuation at 47. 6x trailing P/E (44. 7x forward), making it the more compelling value choice. Analysts rate Walmart Inc. (WMT) a "Buy" — based on 64 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, The Kraft Heinz Company is actually cheaper at 11.

3x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: The Kraft Heinz Company wins at 1. 53x versus Walmart Inc. 's 4. 06x — a reasonable growth-adjusted valuation.

Over the past 5 years, Walmart Inc.

(WMT) delivered a total return of +185. 3%, compared to -27. 9% for The Kraft Heinz Company (KHC). Over 10 years, the gap is even starker: WMT returned +505. 0% versus KHC's -50. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Walmart Inc.

(WMT) is the lower-risk stock at 0. 12β versus The Kraft Heinz Company's 0. 15β — meaning KHC is approximately 25% more volatile than WMT relative to the S&P 500. On balance sheet safety, The Kraft Heinz Company (KHC) carries a lower debt/equity ratio of 51% versus 67% for Walmart Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Walmart Inc.

(WMT) is pulling ahead at 4. 7% versus -3. 5% for The Kraft Heinz Company (KHC). On earnings-per-share growth, the picture is similar: Walmart Inc. grew EPS 13. 3% year-over-year, compared to -318. 1% for The Kraft Heinz Company. Over a 3-year CAGR, WMT leads at 5. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Walmart Inc.

(WMT) is the more profitable company, earning 3. 1% net margin versus -23. 4% for The Kraft Heinz Company — meaning it keeps 3. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WMT leads at 4. 2% versus -18. 7% for KHC. At the gross margin level — before operating expenses — KHC leads at 33. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, The Kraft Heinz Company (KHC) is the more undervalued stock at a PEG of 1. 53x versus Walmart Inc. 's 4. 06x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, The Kraft Heinz Company (KHC) trades at 11. 3x forward P/E versus 44. 7x for Walmart Inc. — 33. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WMT: 5. 4% to $137. 04.

All stocks in this comparison pay dividends.

The Kraft Heinz Company (KHC) offers the highest yield at 6. 9%, versus 0. 7% for Walmart Inc. (WMT).

For long-horizon retirement investors, Walmart Inc.

(WMT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 12), 0. 7% yield, +505. 0% 10Y return). Both have compounded well over 10 years (WMT: +505. 0%, KHC: -50. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Defensive sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: KHC is a mid-cap income-oriented stock; WMT is a mega-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.