Question
Considering I shop at both a lot I chose to analyze Target (TGT) and Wal Mart (WMT). Both companies are fighting round for round against
Considering I shop at both a lot I chose to analyze Target (TGT) and Wal Mart (WMT). Both companies are fighting round for round against Amazon as well as each other. Both companies are taking a risk with closing their stores on Black Friday this year in hopes to combat the current pandemic.
My analysis of both Target and Wal Mart shows that both companies have done well over the last 3 years. Target has seen a steady increase in gross profit over the last 3 years. However, their operating expenses and profit been a small rollercoaster. The operating expenses have increased at a steady rate, which is in line with the cost of living. Whereas, the operating income has slowly decreased over the last 3 years.
Then you have Wal Mart whos gross profit from 2019-2020 was very low but higher than Target. And like Target, Wal Marts operating expenses went up as the year progressed. But the operating income was on a rollercoaster ride as well, in 2017 it was at the higher end and it as dipped and come up slightly every year since. Overall, Wal Mart has more revenue than Target probably due to the fact that have more stores. Target does have far less debt than Wal Mart, almost $100,000 less.
This information would help me decide which company to invest in and that would be Target. They have less debt therefore a higher chance of a higher return on my investment. I would also accept an employment offer from Target before Wal Mart because Target has shown a steady growth in operating income.
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