USFD vs WMT

For growth investors, Walmart Inc.

(WMT) is the stronger pick with 4. 7% revenue growth year-over-year, versus 4. 1% for US Foods Holding Corp. (USFD). US Foods Holding Corp. (USFD) offers the better valuation at 29. 6x trailing P/E (18. 2x forward), making it the more compelling value choice. Analysts rate US Foods Holding Corp. (USFD) a "Buy" — based on 25 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 trailing P/E, US Foods Holding Corp.

(USFD) is the cheapest at 29. 6x versus Walmart Inc. at 47. 7x. On forward P/E, US Foods Holding Corp. is actually cheaper at 18. 2x.

Over the past 5 years, Walmart Inc.

(WMT) delivered a total return of +186. 9%, compared to +114. 1% for US Foods Holding Corp. (USFD). Over 10 years, the gap is even starker: WMT returned +499. 5% versus USFD's +248. 8%. 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 US Foods Holding Corp. 's 0. 50β — meaning USFD is approximately 329% more volatile than WMT relative to the S&P 500. On balance sheet safety, Walmart Inc. (WMT) carries a lower debt/equity ratio of 67% versus 133% for US Foods Holding Corp. — giving it more financial flexibility in a downturn.

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

(WMT) is pulling ahead at 4. 7% versus 4. 1% for US Foods Holding Corp. (USFD). On earnings-per-share growth, the picture is similar: US Foods Holding Corp. grew EPS 45. 5% year-over-year, compared to 13. 3% for Walmart Inc.. 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 1. 7% for US Foods Holding Corp. — 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 3. 1% for USFD. At the gross margin level — before operating expenses — WMT leads at 24. 9%, 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.

On forward earnings alone, US Foods Holding Corp.

(USFD) trades at 18. 2x forward P/E versus 44. 7x for Walmart Inc. — 26. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for USFD: 24. 7% to $108. 33.

In this comparison, WMT (0.

7% yield) pays a dividend. USFD does not pay a meaningful dividend and should not be held primarily for income.

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, +499. 5% 10Y return). Both have compounded well over 10 years (WMT: +499. 5%, USFD: +248. 8%), 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.

WMT pays a dividend while USFD does not, making them suitable for different income and tax situations. 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.