Analyzing Marks and Spencer Group (OTCMKTS:MAKSY) and Walmart (NYSE:WMT)

Marks and Spencer Group (OTCMKTS:MAKSY) and Walmart (NYSE:WMT) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Marks and Spencer Group	N/A	N/A	N/A
Walmart	3.08%	21.45%	7.68%

Risk and Volatility

Marks and Spencer Group has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500. Comparatively, Walmart has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Marks and Spencer Group and Walmart, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marks and Spencer Group	0	1	0	2	3.33
Walmart	0	1	29	1	3.00

Walmart has a consensus price target of $110.59, indicating a potential upside of 15.08%. Given Walmart’s higher possible upside, analysts plainly believe Walmart is more favorable than Marks and Spencer Group.

Earnings and Valuation

This table compares Marks and Spencer Group and Walmart”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marks and Spencer Group	$17.75 billion	0.55	$377.28 million	N/A	N/A
Walmart	$680.99 billion	1.13	$19.44 billion	$2.66	36.13

Walmart has higher revenue and earnings than Marks and Spencer Group.

Insider & Institutional Ownership

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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Marks and Spencer Group pays an annual dividend of $0.14 per share and has a dividend yield of 1.5%. Walmart pays an annual dividend of $0.94 per share and has a dividend yield of 1.0%. Walmart pays out 35.3% of its earnings in the form of a dividend. Walmart has raised its dividend for 53 consecutive years.

Summary

Walmart beats Marks and Spencer Group on 11 of the 16 factors compared between the two stocks.

About Marks and Spencer Group

Marks and Spencer Group plc operates various retail stores. It operates through five segments: UK Clothing & Home, UK Food, International, Ocado, and All Other. The company offers protein deli and dairy; produce; ambient and in-store bakery; meals dessert and frozen; and hospitality and Food on the Move' products. The company also provides womenswear, menswear, lingerie, kids wear, and home products; financial services, including credit cards, payment solutions, insurances, savings, and loans; and renewable energy services. In addition, it invests in and develops real estate properties; operates international franchises; and provides its products online. The company also exports its products. The company was founded in 1884 and is headquartered in London, the United Kingdom.

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.