Critical Survey: Target (NYSE:TGT) versus Almacenes Éxito (NYSE:EXTO)

Target (NYSE:TGT) and Almacenes Éxito (NYSE:EXTO) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Profitability

This table compares Target and Almacenes Éxito’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Target	3.87%	31.91%	7.51%
Almacenes Éxito	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings for Target and Almacenes Éxito, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Target	1	10	18	0	2.59
Almacenes Éxito	0	0	0	0	N/A

Target presently has a consensus target price of $177.61, suggesting a potential upside of 21.87%. Given Target’s higher possible upside, analysts plainly believe Target is more favorable than Almacenes Éxito.

Dividends

Target pays an annual dividend of $4.40 per share and has a dividend yield of 3.0%. Almacenes Éxito pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Target pays out 49.4% of its earnings in the form of a dividend. Target has raised its dividend for 54 consecutive years. Target is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

79.7% of Target shares are owned by institutional investors. 0.2% of Target shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Target and Almacenes Éxito’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Target	$107.41 billion	0.63	$4.14 billion	$8.91	16.36
Almacenes Éxito	$4.90 billion	0.14	$25.20 million	N/A	N/A

Target has higher revenue and earnings than Almacenes Éxito.

Summary

Target beats Almacenes Éxito on 12 of the 13 factors compared between the two stocks.

About Target

Target Corporation operates as a general merchandise retailer in the United States. The company offers apparel for women, men, boys, girls, toddlers, and infants and newborns, as well as jewelry, accessories, and shoes; and beauty and personal care, baby gear, cleaning, paper products, and pet supplies. It also provides dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, and food service; electronics, which includes video game hardware and software, toys, entertainment, sporting goods, and luggage; and furniture, lighting, storage, kitchenware, small appliances, home decor, bed and bath, home improvement, school/office supplies, greeting cards and party supplies, and other seasonal merchandise. In addition, the company sells merchandise through periodic design and creative partnerships, and shop-in-shop experience; and in-store amenities. Further, it sells its products through its stores; and digital channels, including Target.com. Target Corporation was incorporated in 1902 and is headquartered in Minneapolis, Minnesota.

About Almacenes Éxito

Almacenes Éxito S.A. operates as a retail commerce company in South America. The company operates a chain of retail stores primarily under the Éxito, Carulla, Surtimax, Super Inter, Surti Mayorista, Libertad, Mini Libertad, Devoto, Disco, and Géant brands. It is also involved in the online commerce activities. In addition, the company engages in the credit facilities, insurance, money transfers and remittances, mobile phone services, trade tourist package trips and tickets, repair and maintain furnishings, paperwork, and energy trade activities; acquisition and building commercial premises for establishing stores, malls, or other locations; investing in property, promoting, and developing various kinds of real estate projects; and leasing of premises. Further, it invests in shares, bonds, trade papers, and other securities; enters into firm factoring agreements; and distributes oil-based liquid fuels through service stations, as well as alcohols, biofuels, and natural gas for vehicles and other fuels used in the automotive, industrial, fluvial, maritime, and air transport sectors. Almacenes Éxito S.A. was founded in 1905 and is headquartered in Envigado, Colombia. As of January 19, 2024, Almacenes Éxito S.A. operates as a subsidiary of Super Selectos El Salvador.