WallStSmart

Diageo PLC ADR (DEO)vsWalmart Inc. (WMT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Walmart Inc. generates 3501% more annual revenue ($713.16B vs $19.80B). DEO leads profitability with a 12.2% profit margin vs 3.1%. DEO appears more attractively valued with a PEG of 0.73. DEO earns a higher WallStSmart Score of 56/100 (C).

DEO

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 7.5Value: 8.0Quality: 4.0
Piotroski: 3/9Altman Z: 1.40

WMT

Hold

43

out of 100

Grade: D

Growth: 4.7Profit: 5.5Value: 3.7Quality: 6.0
Piotroski: 4/9Altman Z: 3.62
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DEOUndervalued (+56.5%)

Margin of Safety

+56.5%

Fair Value

$231.62

Current Price

$80.65

$150.97 discount

UndervaluedFair: $231.62Overvalued

Intrinsic value data unavailable for WMT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DEO3 strengths · Avg: 8.7/10
Operating MarginProfitability
31.3%10/10

Strong operational efficiency at 31.3%

PEG RatioValuation
0.738/10

Growing faster than its price suggests

Free Cash FlowQuality
$1.51B8/10

Generating 1.5B in free cash flow

WMT4 strengths · Avg: 9.3/10
Market CapQuality
$1.02T10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
3.6210/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
21.8%9/10

Every $100 of equity generates 22 in profit

Free Cash FlowQuality
$6.10B8/10

Generating 6.1B in free cash flow

Areas to Watch

DEO4 concerns · Avg: 2.8/10
EPS GrowthGrowth
2.9%4/10

2.9% earnings growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
69.5x2/10

Trading at 69.5x book value

Revenue GrowthGrowth
-4.0%2/10

Revenue declined 4.0%

WMT4 concerns · Avg: 3.0/10
Price/BookValuation
10.6x4/10

Trading at 10.6x book value

Profit MarginProfitability
3.1%3/10

3.1% margin — thin

Operating MarginProfitability
4.6%3/10

Operating margin of 4.6%

PEG RatioValuation
4.782/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : DEO

The strongest argument for DEO centers on Operating Margin, PEG Ratio, Free Cash Flow. PEG of 0.73 suggests the stock is reasonably priced for its growth.

Bull Case : WMT

The strongest argument for WMT centers on Market Cap, Altman Z-Score, Return on Equity.

Bear Case : DEO

The primary concerns for DEO are EPS Growth, Piotroski F-Score, Price/Book. Debt-to-equity of 2.20 is elevated, increasing financial risk.

Bear Case : WMT

The primary concerns for WMT are Price/Book, Profit Margin, Operating Margin. A P/E of 46.9x leaves little room for execution misses. Thin 3.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

DEO profiles as a declining stock while WMT is a value play — different risk/reward profiles.

WMT carries more volatility with a beta of 0.66 — expect wider price swings.

WMT is growing revenue faster at 5.6% — sustainability is the question.

WMT generates stronger free cash flow (6.1B), providing more financial flexibility.

Bottom Line

DEO scores higher overall (56/100 vs 43/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Diageo PLC ADR

CONSUMER DEFENSIVE · BEVERAGES - WINERIES & DISTILLERIES · USA

Diageo plc produces, markets and sells alcoholic beverages. The company is headquartered in London, the United Kingdom.

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Walmart Inc.

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores from the United States, headquartered in Bentonville, Arkansas. It also owns and operates Sam's Club retail warehouses.

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