YCHART OF THE DAY: Growth Obsessed? Laggard Wal-Mart’s Nice Margins vs. Amazon’s Unprofitable Growth

Wal-Mart Stores Profit Margin Chart

Wal-Mart Stores Profit Margin Chart by YCharts

A smart aside in today’s Wall Street Journal notes Wal-Mart’s (WMT) difficulty in generating sales growth in the U.S. (and includes a wonderfully New York-centric and gratuitous fact: there are enough Wal-Marts in the U.S. to completely cover Manhattan!). The piece in part blames/credits Amazon (AMZN) as it leads the boom in online retailing, which takes away from in-store sales. But being the leader is costly, as seen above. Wal-Mart is maintaining its nice margins, paying a dividend that yields 2.4% and buying in its shares like a champ. Amazon, writing checks to the post office and others to cover your free shipping charges, is suffering declining profits as it grows. Is revenue growth of about six times Wal-Mart's justification for Amazon’s PE, 132 on trailing earnings, that is ten times Wal-Mart's?

From the editors of YCharts Pro Investor Service which includes professional stock charts, stock ratings, stock screener and portfolio strategies.



Please note that this feature is only available as an add-on to YCharts subscriptions.

Please note that this feature requires full activation of your account and is not permitted during the free trial period.

Start My Free Trial {{root.upsell.info.call_to_action}} No credit card required.

Already a subscriber? Sign in.