Analyzing DFI Retail Group (OTCMKTS:DFILF) and Walmart (NASDAQ:WMT)

DFI Retail Group (OTCMKTS:DFILF) and Walmart (NASDAQ:WMT) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Earnings and Valuation

This table compares DFI Retail Group and Walmart”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DFI Retail Group	N/A	N/A	N/A	$0.37	9.77
Walmart	$725.30 billion	1.22	$21.89 billion	$2.85	39.06

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

Institutional & Insider Ownership

11.9% of DFI Retail Group shares are held by institutional investors. Comparatively, 26.8% of Walmart shares are held by institutional investors. 0.1% of Walmart shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares DFI Retail Group and Walmart’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DFI Retail Group	N/A	N/A	N/A
Walmart	3.13%	21.25%	7.60%

Analyst Recommendations

This is a breakdown of current recommendations for DFI Retail Group and Walmart, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DFI Retail Group	0	0	0	0	0.00
Walmart	0	4	31	1	2.92

Walmart has a consensus price target of $138.56, suggesting a potential upside of 24.46%. Given Walmart’s stronger consensus rating and higher probable upside, analysts plainly believe Walmart is more favorable than DFI Retail Group.

Dividends

DFI Retail Group pays an annual dividend of $0.17 per share and has a dividend yield of 4.5%. Walmart pays an annual dividend of $0.99 per share and has a dividend yield of 0.9%. DFI Retail Group pays out 44.2% of its earnings in the form of a dividend. Walmart pays out 34.7% 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.

Summary

Walmart beats DFI Retail Group on 14 of the 15 factors compared between the two stocks.

About DFI Retail Group

DFI Retail Group Holdings Limited operates as a retailer in Asia. The company operates through five segments: Food, Convenience, Health and Beauty, Home Furnishings, Restaurants, and Other Retailing. The company primarily operates grocery stores under the Wellcome, Yonghui, CS Fresh, Market Place, Giant, Hero, Cold Storage, Mercato, San Miu, Jasons, and Lucky brands; and convenience stores under the 7-Eleven brand. It also operates health and beauty stores under the Mannings, Guardian, and GNC brands; and home furnishings stores under the IKEA brand, as well as restaurants under the Maxim’s brand. The company was formerly known as Dairy Farm International Holdings Limited and changed its name to DFI Retail Group Holdings Limited in May 2022. The company was incorporated in 1886 and is based in Quarry Bay, Hong Kong. DFI Retail Group Holdings Limited is a subsidiary of Jardine Strategic Limited.

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.