Reviewing Wal-Mart de Mexico SAB de CV (OTCMKTS:WMMVY) & US Foods (NYSE:USFD)

Wal-Mart de Mexico SAB de CV (OTCMKTS:WMMVY) and US Foods (NYSE:USFD) are both large-cap consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares Wal-Mart de Mexico SAB de CV and US Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wal-Mart de Mexico SAB de CV	4.90%	21.23%	10.12%
US Foods	1.81%	20.53%	6.32%

Earnings & Valuation

This table compares Wal-Mart de Mexico SAB de CV and US Foods”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wal-Mart de Mexico SAB de CV	$52.76 billion	0.84	$2.60 billion	$1.60	16.01
US Foods	$39.42 billion	0.53	$676.00 million	$3.25	29.98

Wal-Mart de Mexico SAB de CV has higher revenue and earnings than US Foods. Wal-Mart de Mexico SAB de CV is trading at a lower price-to-earnings ratio than US Foods, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Wal-Mart de Mexico SAB de CV has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, US Foods has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Wal-Mart de Mexico SAB de CV and US Foods, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wal-Mart de Mexico SAB de CV	2	2	0	0	1.50
US Foods	0	4	11	0	2.73

Wal-Mart de Mexico SAB de CV currently has a consensus target price of $42.00, suggesting a potential upside of 63.93%. US Foods has a consensus target price of $114.54, suggesting a potential upside of 17.54%. Given Wal-Mart de Mexico SAB de CV’s higher possible upside, equities analysts plainly believe Wal-Mart de Mexico SAB de CV is more favorable than US Foods.

Insider and Institutional Ownership

98.8% of US Foods shares are held by institutional investors. 0.7% of US Foods shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

About Wal-Mart de Mexico SAB de CV

Wal-Mart de México, S.A.B. de C.V. owns and operates self-service stores in Mexico and Central America. The company operates discount warehouses and stores, hypermarkets, supermarkets, and membership self-service wholesale stores. It operates Bodega Aurrerá discount stores, Walmart hypermarkets, Walmart Express supermarkets, and Sam’s Club membership self-service wholesale stores. The company operates Despensa Familiar and Palí discount stores; Paiz, La Despensa de Don Juan, La Unión, and Más x Menos supermarkets; Bodegas, Maxi Bodega, and Maxi Palí stores; and Walmart hypermarkets in Costa Rica, Guatemala, Honduras, Nicaragua, and El Salvador. In addition, it imports and sells goods; develops properties; and manages real estate companies. The company was founded in 1958 and is headquartered in Mexico City, Mexico. Wal-Mart de México, S.A.B. de C.V. operates as a subsidiary of Intersalt, S. De R.l. De C.v.

About US Foods

US Foods Holding Corp., together with its subsidiaries, engages in marketing, sale, and distribution of fresh, frozen, and dry food and non-food products to foodservice customers in the United States. The company's customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. The company was formerly known as USF Holding Corp. and changed its name to US Foods Holding Corp. in February 2016. US Foods Holding Corp. was incorporated in 2007 and is headquartered in Rosemont, Illinois.