WBA vs. BBY, EXPE, YUMC, DKS, GME, DRI, DPZ, BURL, CASY, and ULTA
Should you be buying Walgreens Boots Alliance stock or one of its competitors? The main competitors of Walgreens Boots Alliance include Best Buy (BBY), Expedia Group (EXPE), Yum China (YUMC), DICK'S Sporting Goods (DKS), GameStop (GME), Darden Restaurants (DRI), Domino's Pizza (DPZ), Burlington Stores (BURL), Casey's General Stores (CASY), and Ulta Beauty (ULTA). These companies are all part of the "retail/wholesale" sector.
Walgreens Boots Alliance (NASDAQ:WBA) and Best Buy (NYSE:BBY) are both large-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, media sentiment, risk, community ranking, dividends, profitability, analyst recommendations, institutional ownership and valuation.
Walgreens Boots Alliance pays an annual dividend of $1.00 per share and has a dividend yield of 5.5%. Best Buy pays an annual dividend of $3.76 per share and has a dividend yield of 5.1%. Walgreens Boots Alliance pays out -14.3% of its earnings in the form of a dividend. Best Buy pays out 66.1% 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. Walgreens Boots Alliance is clearly the better dividend stock, given its higher yield and lower payout ratio.
Best Buy has lower revenue, but higher earnings than Walgreens Boots Alliance. Walgreens Boots Alliance is trading at a lower price-to-earnings ratio than Best Buy, indicating that it is currently the more affordable of the two stocks.
Walgreens Boots Alliance has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Best Buy has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.
Walgreens Boots Alliance presently has a consensus price target of $24.36, suggesting a potential upside of 33.98%. Best Buy has a consensus price target of $84.00, suggesting a potential upside of 14.52%. Given Walgreens Boots Alliance's higher possible upside, research analysts clearly believe Walgreens Boots Alliance is more favorable than Best Buy.
Best Buy has a net margin of 2.86% compared to Walgreens Boots Alliance's net margin of -4.18%. Best Buy's return on equity of 48.45% beat Walgreens Boots Alliance's return on equity.
58.6% of Walgreens Boots Alliance shares are owned by institutional investors. Comparatively, 81.0% of Best Buy shares are owned by institutional investors. 17.4% of Walgreens Boots Alliance shares are owned by company insiders. Comparatively, 0.6% of Best Buy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
In the previous week, Walgreens Boots Alliance had 19 more articles in the media than Best Buy. MarketBeat recorded 27 mentions for Walgreens Boots Alliance and 8 mentions for Best Buy. Best Buy's average media sentiment score of 1.37 beat Walgreens Boots Alliance's score of 0.60 indicating that Best Buy is being referred to more favorably in the news media.
Best Buy received 411 more outperform votes than Walgreens Boots Alliance when rated by MarketBeat users. Likewise, 73.97% of users gave Best Buy an outperform vote while only 66.10% of users gave Walgreens Boots Alliance an outperform vote.
Summary
Best Buy beats Walgreens Boots Alliance on 14 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding WBA and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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