Target vs Walmart
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KIRA’s take AI analyst
I put Target and Walmart side by side, using each one’s latest annual report. Here is what stands out:
- Walmart is the larger business, with $713.2B of revenue in fiscal 2026 against $104.8B for Target, about 6.8 times as much.
- Walmart grew revenue faster (4.7%, against −1.7%).
- Target kept more of each dollar of sales as operating profit (4.9% operating margin, against 4.2%).
- Target turned more of its sales into free cash flow (2.7% FCF margin, against 2.1%).
- Walmart earned a higher return on the capital invested in it (16.1%, against 15.0%).
- Investors pay more for each dollar of Walmart’s earnings: a P/E of 43.4x against 15.4x for Target.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Target
TGT
6/11
Gross marginOperating marginNet marginFCF marginReturn on equityShare count change
Walmart
WMT
5/11
Revenue growth5-year growthReturn on capitalPiotroski F-scoreNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | TGT FY25 | WMT FY26 |
|---|---|---|
| Size | ||
| Market cap | $67.8B | $959.7B |
| Revenue | $104.8B | $713.2B |
| Free cash flow | $2.8B | $14.9B |
| Net income | $3.7B | $21.9B |
| Growth | ||
| Revenue growth | −1.7% | 4.7% |
| 5-year growth | 2.3% | 5.0% |
| Share count change | −1.3% | −0.7% |
| Profitability | ||
| Gross margin | 27.9% | 24.9% |
| Operating margin | 4.9% | 4.2% |
| Net margin | 3.5% | 3.1% |
| FCF margin | 2.7% | 2.1% |
| Return on capital | 15.0% | 16.1% |
| Return on equity | 24.0% | 23.0% |
| Balance sheet | ||
| Net debt | $11.0B | $40.8B |
| Net debt / EBITDA | 1.3x | 0.9x |
| Dividends and buybacks | $2.5B | $15.6B |
| Valuation & quality | ||
| P/E | 15.4x | 43.4x |
| Piotroski F-score | 6 | 7 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.