Financial Survey: Jeronimo Martins SGPS (OTCMKTS:JRONY) vs. Walmart (NYSE:WMT)

Jeronimo Martins SGPS (OTCMKTS:JRONY) and Walmart (NYSE:WMT) are both large-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Jeronimo Martins SGPS and Walmart, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jeronimo Martins SGPS	0	1	0	1	3.00
Walmart	0	1	29	0	2.97

Walmart has a consensus price target of $112.38, suggesting a potential upside of 8.96%. Given Walmart’s higher probable upside, analysts clearly believe Walmart is more favorable than Jeronimo Martins SGPS.

Valuation and Earnings

This table compares Jeronimo Martins SGPS and Walmart”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jeronimo Martins SGPS	$36.22 billion	0.42	$648.18 million	$2.13	22.53
Walmart	$693.15 billion	1.19	$19.44 billion	$2.66	38.77

Walmart has higher revenue and earnings than Jeronimo Martins SGPS. Jeronimo Martins SGPS is trading at a lower price-to-earnings ratio than Walmart, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

26.8% of Walmart shares are owned by institutional investors. 0.1% of Walmart shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Jeronimo Martins SGPS pays an annual dividend of $0.79 per share and has a dividend yield of 1.6%. Walmart pays an annual dividend of $0.94 per share and has a dividend yield of 0.9%. Jeronimo Martins SGPS pays out 37.1% of its earnings in the form of a dividend. Walmart pays out 35.3% 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. Walmart has increased its dividend for 53 consecutive years.

Volatility & Risk

Jeronimo Martins SGPS has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Walmart has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.

Profitability

This table compares Jeronimo Martins SGPS and Walmart’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jeronimo Martins SGPS	1.78%	20.66%	4.41%
Walmart	3.08%	21.45%	7.68%

Summary

Walmart beats Jeronimo Martins SGPS on 14 of the 18 factors compared between the two stocks.

About Jeronimo Martins SGPS

Jerónimo Martins, SGPS, S.A. operates in the food distribution and specialized retail sectors in Portugal, Poland, and Colombia. The company operates through Portugal Retail; Portugal Cash & Carry; Poland Retail; Colombia Retail; and Others, Eliminations and Adjustments segments. It operates food stores under the Biedronka name; and a chain of health and beauty stores under the Hebe banner in Poland, as well as food stores under the Ara name in Colombia. The company also operates supermarkets under the Pingo Doce banner; and cash and carry stores under the Recheio name in Portugal, and under the Bodega del Canasto name in Colombia. In addition, it operates restaurants under the Pingo Doce name; para-pharmacies and petrol stations under Bem-Estar brand; and clothing under Code brand. Further, the company operates coffee shops and kiosks under the Jeronymo name; and chocolates and confectionary retail stores under Hussel name. Additionally, the company engages in human resources top management, real estate management and administration, training, and saline brackish waters aquaculture; wholesale of fruit and vegetables; retail management, consultancy, and logistics activities; purchase and sale of real estate; growing of crops and farming of animals; retail sale of health and beauty products; manufacture of milk and dairy products; rental of air transport equipment; and provision of business portfolio management, financial, and sea passenger water transport services. It is also involved in the trading and distribution of consumer goods; retail and wholesale of non-food products; other business support service activities; and provision of services in the area of wholesale and retail distribution. The company was founded in 1792 and is headquartered in Lisbon, Portugal. Jerónimo Martins, SGPS, S.A. operates as a subsidiary of Sociedade Francisco Manuel Dos Santos, S.G.P.S., S.A.

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.