IRSA Inversiones Y Representaciones (NYSE: IRS) and Wal-Mart Stores (NYSE:WMT) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitabiliy, earnings, institutional ownership and dividends.
Valuation & Earnings
This table compares IRSA Inversiones Y Representaciones and Wal-Mart Stores’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|IRSA Inversiones Y Representaciones||$3.92 billion||0.33||$507.57 million||$1.66||13.39|
|Wal-Mart Stores||$487.51 billion||0.50||$32.97 billion||$4.41||18.51|
Wal-Mart Stores has higher revenue and earnings than IRSA Inversiones Y Representaciones. IRSA Inversiones Y Representaciones is trading at a lower price-to-earnings ratio than Wal-Mart Stores, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
IRSA Inversiones Y Representaciones has a beta of 2.03, indicating that its stock price is 103% more volatile than the S&P 500. Comparatively, Wal-Mart Stores has a beta of 0.29, indicating that its stock price is 71% 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 2.5%. IRSA Inversiones Y Representaciones does not pay a dividend. Wal-Mart Stores pays out 46.3% of its earnings in the form of a dividend. IRSA Inversiones Y Representaciones has raised its dividend for 42 consecutive years.
This is a summary of current ratings and price targets for IRSA Inversiones Y Representaciones and Wal-Mart Stores, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|IRSA Inversiones Y Representaciones||0||0||1||0||3.00|
Wal-Mart Stores has a consensus price target of $79.07, indicating a potential downside of 3.12%. Given Wal-Mart Stores’ higher probable upside, analysts clearly believe Wal-Mart Stores is more favorable than IRSA Inversiones Y Representaciones.
Institutional and Insider Ownership
19.7% of IRSA Inversiones Y Representaciones shares are owned by institutional investors. Comparatively, 30.1% of Wal-Mart Stores shares are owned by institutional investors. 25.1% of IRSA Inversiones Y Representaciones shares are owned by company insiders. Comparatively, 51.4% of Wal-Mart Stores shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares IRSA Inversiones Y Representaciones and Wal-Mart Stores’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|IRSA Inversiones Y Representaciones||2.14%||-1.23%||-0.12%|
Wal-Mart Stores beats IRSA Inversiones Y Representaciones on 12 of the 16 factors compared between the two stocks.
IRSA Inversiones Y Representaciones Company Profile
IRSA Inversiones y Representaciones Sociedad Anonima is a holding company. The Company invests on its own behalf and through investee companies in companies operating in various sectors of the Israeli and global economy. The Company’s segments are Cellcom, which includes cellular telephone services, content and added value services, other services and revenues from the sale of end user equipment in the cellular field; Property and Buildings and projects in Las Vegas, which includes the rental of income-generating properties and residential buildings; Shufersal, which includes retail and the rental of income-generating properties; Adama, which includes the sale of agro products and non-agro products; Clal Insurance Enterprise Holdings, which operates through subsidiary companies in the fields of insurance, pensions and provident funds, in the field of financial services and in the holding of assets and real businesses, and Others.
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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