Critical Comparison: Almacenes Éxito (NYSE:EXTO) vs. Walmart (NYSE:WMT)

Almacenes Éxito (NYSE:EXTO) and Walmart (NYSE:WMT) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Dividends

Almacenes Éxito pays an annual dividend of $0.04 per share and has a dividend yield of 0.9%. Walmart pays an annual dividend of $0.83 per share and has a dividend yield of 1.2%. Walmart pays out 35.5% of its earnings in the form of a dividend. Walmart has raised its dividend for 52 consecutive years. Walmart is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Almacenes Éxito 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
Almacenes Éxito	$4.90 billion	0.14	$25.20 million	N/A	N/A
Walmart	$648.13 billion	0.87	$15.51 billion	$2.34	29.96

Walmart has higher revenue and earnings than Almacenes Éxito.

Institutional and Insider Ownership

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

Profitability

This table compares Almacenes Éxito and Walmart’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Almacenes Éxito	N/A	N/A	N/A
Walmart	2.88%	21.57%	7.38%

Analyst Recommendations

This is a breakdown of recent recommendations for Almacenes Éxito and Walmart, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Almacenes Éxito	0	0	0	0	N/A
Walmart	0	3	27	0	2.90

Walmart has a consensus target price of $70.86, indicating a potential upside of 1.21%. Given Walmart’s higher probable upside, analysts clearly believe Walmart is more favorable than Almacenes Éxito.

Summary

Walmart beats Almacenes Éxito on 12 of the 13 factors compared between the two stocks.

About Almacenes Éxito

Almacenes Éxito S.A. operates as a retail commerce company in South America. The company operates a chain of retail stores primarily under the Éxito, Carulla, Surtimax, Super Inter, Surti Mayorista, Libertad, Mini Libertad, Devoto, Disco, and Géant brands. It is also involved in the online commerce activities. In addition, the company engages in the credit facilities, insurance, money transfers and remittances, mobile phone services, trade tourist package trips and tickets, repair and maintain furnishings, paperwork, and energy trade activities; acquisition and building commercial premises for establishing stores, malls, or other locations; investing in property, promoting, and developing various kinds of real estate projects; and leasing of premises. Further, it invests in shares, bonds, trade papers, and other securities; enters into firm factoring agreements; and distributes oil-based liquid fuels through service stations, as well as alcohols, biofuels, and natural gas for vehicles and other fuels used in the automotive, industrial, fluvial, maritime, and air transport sectors. Almacenes Éxito S.A. was founded in 1905 and is headquartered in Envigado, Colombia. As of January 19, 2024, Almacenes Éxito S.A. operates as a subsidiary of Super Selectos El Salvador.

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.