WMT vs TGT

For growth investors, Walmart Inc.

(WMT) is the stronger pick with 4. 7% revenue growth year-over-year, versus -1. 7% for Target Corporation (TGT). Target Corporation (TGT) offers the better valuation at 16. 1x trailing P/E (15. 6x forward), making it the more compelling value choice. Analysts rate Walmart Inc. (WMT) a "Buy" — based on 66 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, Target Corporation (TGT) is the cheapest at 16.

1x versus Walmart Inc. at 42. 9x. On forward P/E, Target Corporation is actually cheaper at 15. 6x.

Over the past 5 years, Walmart Inc.

(WMT) delivered a total return of +169. 2%, compared to -34. 0% for Target Corporation (TGT). Over 10 years, the gap is even starker: WMT returned +426. 7% versus TGT's +142. 5%. 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. 01β versus Target Corporation's 0. 66β — meaning TGT is approximately 5692% more volatile than WMT relative to the S&P 500. On balance sheet safety, Walmart Inc. (WMT) carries a lower debt/equity ratio of 63% versus 126% for Target Corporation — giving it more financial flexibility in a downturn.

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

(WMT) is pulling ahead at 4. 7% versus -1. 7% for Target Corporation (TGT). On earnings-per-share growth, the picture is similar: Walmart Inc. grew EPS 13. 3% year-over-year, compared to -8. 2% for Target Corporation. 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.

Target Corporation (TGT) is the more profitable company, earning 3.

5% net margin versus 3. 1% for Walmart Inc. — meaning it keeps 3. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TGT leads at 4. 6% versus 4. 2% for WMT. At the gross margin level — before operating expenses — TGT leads at 25. 4%, 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, Target Corporation (TGT) trades at 15.

6x forward P/E versus 40. 3x for Walmart Inc. — 24. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WMT: 19. 0% to $139. 44.

All stocks in this comparison pay dividends.

Target Corporation (TGT) offers the highest yield at 3. 4%, versus 0. 8% 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. 01), 0. 8% yield, +426. 7% 10Y return). Both have compounded well over 10 years (WMT: +426. 7%, TGT: +142. 5%), 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: WMT is a large-cap quality compounder stock; TGT is a mid-cap deep-value 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.