Target Corporation (TGT)vsYum! Brands Inc (YUM)
TGT
Target Corporation
$125.25
-0.50%
CONSUMER DEFENSIVE · Cap: $56.89B
YUM
Yum! Brands Inc
$151.95
-3.37%
CONSUMER CYCLICAL · Cap: $43.34B
Smart Verdict
WallStSmart Research — data-driven comparison
Target Corporation generates 1135% more annual revenue ($104.78B vs $8.49B). YUM leads profitability with a 20.5% profit margin vs 3.5%. YUM appears more attractively valued with a PEG of 1.93. YUM earns a higher WallStSmart Score of 65/100 (C+).
TGT
Hold48
out of 100
Grade: D+
YUM
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+33.2%
Fair Value
$171.51
Current Price
$125.25
$46.26 discount
Margin of Safety
-76.3%
Fair Value
$90.20
Current Price
$151.95
$61.75 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Attractively priced relative to earnings
Generating 2.3B in free cash flow
Strong operational efficiency at 31.0%
Earnings expanding 72.2% YoY
Keeps 21 of every $100 in revenue as profit
15.2% revenue growth
Areas to Watch
Expensive relative to growth rate
3.5% margin — thin
Operating margin of 4.9%
Revenue declined 1.5%
Expensive relative to growth rate
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : TGT
The strongest argument for TGT centers on Market Cap, Return on Equity, P/E Ratio.
Bull Case : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth, Profit Margin. Profitability is solid with margins at 20.5% and operating margin at 31.0%. Revenue growth of 15.2% demonstrates continued momentum.
Bear Case : TGT
The primary concerns for TGT are PEG Ratio, Profit Margin, Operating Margin. Thin 3.5% margins leave little buffer for downturns.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
TGT profiles as a value stock while YUM is a growth play — different risk/reward profiles.
TGT carries more volatility with a beta of 1.01 — expect wider price swings.
YUM is growing revenue faster at 15.2% — sustainability is the question.
TGT generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
YUM scores higher overall (65/100 vs 48/100), backed by strong 20.5% margins and 15.2% revenue growth. TGT offers better value entry with a 33.2% margin of safety. 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.
Target Corporation
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.
Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
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