Walmart de M�xico y Centroam�rica (OTCMKTS: WMMVY) and Costco Wholesale (NASDAQ:COST) are both large-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Risk and Volatility

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Walmart de M�xico y Centroam�rica has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Costco Wholesale has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Walmart de M�xico y Centroam�rica and Costco Wholesale, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Walmart de M�xico y Centroam�rica 0 2 0 0 2.00
Costco Wholesale 0 6 21 0 2.78

Costco Wholesale has a consensus target price of $192.52, suggesting a potential downside of 1.06%. Given Costco Wholesale’s stronger consensus rating and higher probable upside, analysts clearly believe Costco Wholesale is more favorable than Walmart de M�xico y Centroam�rica.

Valuation & Earnings

This table compares Walmart de M�xico y Centroam�rica and Costco Wholesale’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Walmart de M�xico y Centroam�rica $26.84 billion 1.82 $1.79 billion $0.82 34.09
Costco Wholesale $129.03 billion 0.66 $2.68 billion $5.82 33.43

Costco Wholesale has higher revenue and earnings than Walmart de M�xico y Centroam�rica. Costco Wholesale is trading at a lower price-to-earnings ratio than Walmart de M�xico y Centroam�rica, indicating that it is currently the more affordable of the two stocks.

Dividends

Walmart de M�xico y Centroam�rica pays an annual dividend of $0.21 per share and has a dividend yield of 0.8%. Costco Wholesale pays an annual dividend of $2.00 per share and has a dividend yield of 1.0%. Walmart de M�xico y Centroam�rica pays out 25.6% of its earnings in the form of a dividend. Costco Wholesale pays out 34.4% 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. Costco Wholesale has raised its dividend for 14 consecutive years. Costco Wholesale is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

0.1% of Walmart de M�xico y Centroam�rica shares are held by institutional investors. Comparatively, 73.0% of Costco Wholesale shares are held by institutional investors. 0.6% of Costco Wholesale shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Walmart de M�xico y Centroam�rica and Costco Wholesale’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Walmart de M�xico y Centroam�rica 7.10% 22.23% 11.76%
Costco Wholesale 2.18% 24.74% 7.37%

Summary

Costco Wholesale beats Walmart de M�xico y Centroam�rica on 12 of the 17 factors compared between the two stocks.

Walmart de M�xico y Centroam�rica Company Profile

Wal-Mart de México, S.A.B. de C.V. owns and operates self-service stores in Mexico and Central America. The company operates discount stores, hypermarkets, supermarkets, membership self-service wholesale stores, and pharmacies. It operates 1,820 Bodega Aurrerá discount stores, 270 Walmart hypermarkets, 94 Superama supermarkets, 162 Sam's Club membership self-service wholesale stores, and 10 Medimart pharmacies. The company also operates 522 Despensa Familiar and Palí discount stores; 94 Paiz, La Despensa de Don Juan, La Unión, and Más x Menos supermarkets; 133 Bodegas, Maxi Bodega, and Maxi Palí stores; and 29 Walmart hypermarkets in Costa Rica, Guatemala, Honduras, Nicaragua, and El Salvador. In addition, it imports and sells goods; develops properties; and manages real estate companies. The company was founded in 1958 and is headquartered in Mexico City, Mexico. Wal-Mart de México, S.A.B. de C.V. is a subsidiary of Walmart Inc.

Costco Wholesale Company Profile

Costco Wholesale Corporation is engaged in the operation of membership warehouses in the United States and Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Australia, Spain, and through its subsidiaries in Taiwan and Korea. As of August 28, 2016, the Company operated 715 warehouses across the world. The Company’s average warehouse space is approximately 144,000 square feet. The Company’s warehouses on average operate on a seven-day, 70-hour week. The Company offers merchandise in various categories, which include foods (including dry foods, packaged foods and groceries); sundries (including snack foods, candy, alcoholic and nonalcoholic beverages, and cleaning supplies); hardlines (including appliances, electronics, health and beauty aids, hardware, and garden and patio); fresh foods (including meat, produce, deli and bakery); softlines (including apparel and small appliances), and other (including gas stations and pharmacy).

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