Critical Analysis: Cresud S.A.C.I.F. y A. (CRESY) and Wal-Mart Stores (WMT)
Cresud S.A.C.I.F. y A. (NASDAQ: CRESY) and Wal-Mart Stores (NYSE:WMT) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.
Risk & Volatility
Cresud S.A.C.I.F. y A. has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500. Comparatively, Wal-Mart Stores has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.
Wal-Mart Stores pays an annual dividend of $2.04 per share and has a dividend yield of 2.6%. Cresud S.A.C.I.F. y A. does not pay a dividend. Wal-Mart Stores pays out 49.0% of its earnings in the form of a dividend. Cresud S.A.C.I.F. y A. has raised its dividend for 42 consecutive years.
Valuation and Earnings
This table compares Cresud S.A.C.I.F. y A. and Wal-Mart Stores’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cresud S.A.C.I.F. y A.||$4.16 billion||0.24||$380.99 million||N/A||N/A|
|Wal-Mart Stores||$490.01 billion||0.48||$32.87 billion||$4.16||18.96|
Wal-Mart Stores has higher revenue and earnings than Cresud S.A.C.I.F. y A..
This table compares Cresud S.A.C.I.F. y A. and Wal-Mart Stores’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cresud S.A.C.I.F. y A.||0.90%||-4.41%||-0.47%|
Insider & Institutional Ownership
24.9% of Cresud S.A.C.I.F. y A. shares are held by institutional investors. Comparatively, 29.9% of Wal-Mart Stores shares are held by institutional investors. 36.2% of Cresud S.A.C.I.F. y A. shares are held by company insiders. Comparatively, 51.4% of Wal-Mart Stores shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a summary of recent recommendations for Cresud S.A.C.I.F. y A. and Wal-Mart Stores, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cresud S.A.C.I.F. y A.||0||0||0||0||N/A|
Wal-Mart Stores has a consensus target price of $80.47, suggesting a potential upside of 2.01%. Given Wal-Mart Stores’ higher probable upside, analysts plainly believe Wal-Mart Stores is more favorable than Cresud S.A.C.I.F. y A..
Wal-Mart Stores beats Cresud S.A.C.I.F. y A. on 11 of the 14 factors compared between the two stocks.
Cresud S.A.C.I.F. y A. Company Profile
Cresud Sociedad Anonima Comercial, Inmobiliaria, Financiera y Agropecuaria is an agricultural company engaged in the production of basic agricultural commodities with presence in the agricultural sector of Brazil, through its investment in Brasilagro, as well as in other Latin American countries. In addition, the Company leases lands to third parties and perform agency and agro-industrial services, including a meat packing plant. It operates in two businesses areas, namely, Agricultural and Investment and Development Properties. Its Agricultural business comprises eight segments: Crops, Cattle, Dairy, Sugarcane, Agricultural Rentals and Services, Land Transformation and Sales, Agro-industrial and Others. The Company’s Investment and Development Properties comprises six segments: Shopping Center Properties, Offices, Sales and Developments, Hotels, International, and Financial Operations and Others. The Company’s main crops include soybean, wheat, corn and sunflower.
Wal-Mart Stores Company Profile
Wal-Mart Stores, Inc. is engaged in the operation of retail, wholesale and other units in various formats around the world. The Company operates through three segments: Walmart U.S., Walmart International and Sam’s Club. The Walmart U.S. segment includes its mass merchant concept in the United States operating under the Walmart or Wal-Mart brands, as well as digital retail. The Walmart International segment consists of the Company’s operations outside of the United States, including various retail Websites. The Walmart International segment includes various formats divided into three categories: retail, wholesale and other. These categories consist of various formats, including supercenters, supermarkets, and warehouse clubs, such as Sam’s Clubs, cash and carry, home improvement, specialty electronics, apparel stores, drug stores and convenience stores, as well as digital retail. The Sam’s Club segment includes the warehouse membership clubs in the United States, and samsclub.com.
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