It’s the end of the month and time for the monthly industry comparison. This month, January of 2011, I compared the top dividend paying companies in the Discount, Variety Store industry.
This group was comprised of Walmart, Target, Costco, and Family Dollar Stores. If you missed any of them, take a look at my analysis of each company.
*Unless otherwise stated, all growth rates and averages are based on a 10 year history
|Walmart (WMT)||Target (TGT)||Costco (COST)||Family Dollar (FDO)|
|Avg. Gross Margin||23.83%||32.58%||12.44%||33.87%|
|Cash Payout Ratio||30.05%||12.18%||19.86%||21.62%|
|Total Debt / Equity||0.52||0.75||0.20||0.18|
|Avg. Return on Equity||20.77%||18.89%||12.51%||19.62%|
|Avg. Cash Return on Capital||6.25%||1.36%||6.31%||14.86%|
|5 Year Avg. Low p/e||14.01||12.39||17.05||11.79|
|Current p/e (ttm)||14.8||16.68||24.20||16.38|
|Current p/e (forward)||13.29||14.04||21.22||13.76|
*FCF growth was N/A for Target and Costco because the initial value used in the calculation was negative.
Overall, I find Walmart to be the most attractive stock. Besides their stellar numbers and aggressive growth, they are the only company that encompasses a discount retailer AND warehouse club in one. If you were to buy Target, Costco, or Family Dollar, you are only buying a retailer OR warehouse club. Walmart is the best of both worlds.
With that said, I do find value in the other stocks, but at present I will only be adding position to Walmart.
To get all my updates, please subscribe to my rss feed
Full Disclosure: I do not own any FDO, TGT, or COST. I am long WMT. My Current Portfolio Holdings can be seen here