US Foods (NYSE:USFD) and Walmart (NASDAQ:WMT) Head to Head Survey

Walmart (NASDAQ:WMT) and US Foods (NYSE:USFD) are both large-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.

Institutional & Insider Ownership

26.8% of Walmart shares are owned by institutional investors. Comparatively, 98.8% of US Foods shares are owned by institutional investors. 0.1% of Walmart shares are owned by company insiders. Comparatively, 0.7% of US Foods shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Walmart and US Foods, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Walmart	0	3	33	3	3.00
US Foods	0	4	10	1	2.80

Walmart presently has a consensus target price of $132.41, indicating a potential upside of 10.44%. US Foods has a consensus target price of $114.85, indicating a potential upside of 13.76%. Given US Foods’ higher possible upside, analysts plainly believe US Foods is more favorable than Walmart.

Profitability

This table compares Walmart and US Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Walmart	3.00%	21.83%	7.80%
US Foods	1.81%	20.53%	6.32%

Risk & Volatility

Walmart has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, US Foods has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Valuation and Earnings

This table compares Walmart and US Foods”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Walmart	$713.16 billion	1.33	$21.89 billion	$2.77	43.28
US Foods	$39.42 billion	0.55	$676.00 million	$3.25	31.06

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

Summary

Walmart beats US Foods on 10 of the 15 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 US Foods

US Foods Holding Corp., together with its subsidiaries, engages in marketing, sale, and distribution of fresh, frozen, and dry food and non-food products to foodservice customers in the United States. The company's customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. The company was formerly known as USF Holding Corp. and changed its name to US Foods Holding Corp. in February 2016. US Foods Holding Corp. was incorporated in 2007 and is headquartered in Rosemont, Illinois.