Walmart (NYSE:WMT) & J. Sainsbury (OTCMKTS:JSAIY) Critical Survey

Walmart (NYSE:WMT) and J. Sainsbury (OTCMKTS:JSAIY) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Dividends

Walmart pays an annual dividend of $0.94 per share and has a dividend yield of 1.0%. J. Sainsbury pays an annual dividend of $1.00 per share and has a dividend yield of 6.2%. Walmart pays out 40.2% of its earnings in the form of a dividend. Walmart has raised its dividend for 53 consecutive years.

Volatility & Risk

Walmart has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, J. Sainsbury has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Walmart and J. Sainsbury, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Walmart	0	2	29	1	2.97
J. Sainsbury	0	3	0	3	3.00

Walmart currently has a consensus target price of $106.67, suggesting a potential upside of 8.40%. Given Walmart’s higher possible upside, equities research analysts clearly believe Walmart is more favorable than J. Sainsbury.

Earnings and Valuation

This table compares Walmart and J. Sainsbury”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Walmart	$680.99 billion	1.15	$19.44 billion	$2.34	42.05
J. Sainsbury	$41.86 billion	0.22	$308.77 million	N/A	N/A

Walmart has higher revenue and earnings than J. Sainsbury.

Profitability

This table compares Walmart and J. Sainsbury’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Walmart	2.75%	21.76%	7.79%
J. Sainsbury	N/A	N/A	N/A

Institutional & Insider Ownership

26.8% of Walmart shares are owned by institutional investors. 45.6% of Walmart shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Walmart beats J. Sainsbury on 11 of the 16 factors compared between the two stocks.

About Walmart

Walmart Inc. engages in the operation of retail, wholesale, other units, and eCommerce worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, and discount stores under Walmart and Walmart Neighborhood Market brands; membership-only warehouse clubs; ecommerce websites, such as walmart.com.mx, walmart.ca, flipkart.com, PhonePe and other sites; and mobile commerce applications. The company offers grocery and consumables, including dairy, meat, bakery, deli, produce, dry, chilled or frozen packaged foods, alcoholic and nonalcoholic beverages, floral, snack foods, candy, other grocery items, health and beauty aids, paper goods, laundry and home care, baby care, pet supplies, and other consumable items; fuel, tobacco and other categories. It is also involved in the provision of health and wellness products covering pharmacy, optical and hearing services, and over-the-counter drugs and other medical products; and home and apparel including home improvement, outdoor living, gardening, furniture, apparel, jewelry, tools and power equipment, housewares, toys, seasonal items, mattresses and tire and battery centers. In addition, the company offers consumer electronics and accessories, software, video games, office supplies, appliances, and third-party gift cards. Further, it operates digital payment platforms; and offers financial services and related products, including money transfers, bill payments, money orders, check cashing, prepaid access, co-branded credit cards, installment lending, and earned wage access. Additionally, the company markets lines of merchandise under private brands, including Allswell, Athletic Works, Equate, and Free Assembly. The company was formerly known as Wal-Mart Stores, Inc. and changed its name to Walmart Inc. in February 2018. Walmart Inc. was founded in 1945 and is based in Bentonville, Arkansas.

About J. Sainsbury

J Sainsbury plc, together with its subsidiaries, engages in the food, general merchandise and clothing retailing, and financial services activities in the United Kingdom and the Republic of Ireland. It operates through three segments: Retail Food, Retail General Merchandise and Clothing, and Financial Services. The company operates various store formats, including convenience stores and supermarkets. It is also involved in the online grocery and general merchandise operations. In addition, it offers financial services, such as credit cards, scorecards, and personal loans; and home, car, pet, travel, and life insurance products. J Sainsbury plc was founded in 1869 and is headquartered in London, the United Kingdom.