Target vs Walmart Overview
Two discount retail giants with different positioning: Target focuses on a curated shopping experience with trendy private labels, while Walmart competes on price and convenience through massive scale.
| Metric | Target (TGT) | Walmart (WMT) |
|---|---|---|
| Sector | Retail | Retail |
| Market Cap | $55B | $685B |
| Revenue | $106.6B | $681.0B |
| Net Income | $4.1B | $15.5B |
How Does Target Make Money?
Target (TGT) operates in the Retail sector with a market cap of $55B. For a full breakdown of Target’s revenue sources, see the Target revenue breakdown.
Target Revenue Breakdown
| Category | FY2024 (Jan) | FY2023 (Jan) | YoY Growth |
|---|---|---|---|
| Beauty & Household Essentials | $21.5B | $20.8B | +3.4% |
| Food & Beverage | $24.8B | $23.9B | +3.8% |
| Hardlines | $14.9B | $16.2B | -8.0% |
| Apparel & Accessories | $17.5B | $17.8B | -1.7% |
| Home Furnishings & Décor | $19.8B | $21.2B | -6.6% |
| Other | $8.1B | $7.8B | +3.8% |
| Total Revenue | $106.6B | $107.4B | -0.7% |
How Does Walmart Make Money?
Walmart (WMT) operates in the Retail sector with a market cap of $685B. For a full breakdown of Walmart’s revenue sources, see the Walmart revenue breakdown.
Walmart Revenue Breakdown
| Segment | FY2025 (Jan) | FY2024 (Jan) | YoY Growth |
|---|---|---|---|
| Walmart U.S. | $462.5B | $441.8B | +4.7% |
| Walmart International | $121.4B | $114.6B | +5.9% |
| Sam’s Club U.S. | $86.2B | $84.3B | +2.3% |
| Other | $10.9B | $10.7B | +1.9% |
| Total Revenue | $681.0B | $648.1B | +5.1% |
Target vs Walmart Profitability
Target: Yes, Target is profitable. The company reported net income of $4.1B on total revenue of $106.6B. With an operating margin of 5.5%, Target has recovered from inventory challenges but faces ongoing competitive pressures.
Walmart: Yes, Walmart is profitable. The company reported net income of $15.5B on total revenue of $681.0B. With an operating margin of 4.2%, Walmart generates significant profits through scale.
Key Financial Metrics Comparison
Target Key Metrics
- Gross Margin: 28.5% — Higher than Walmart reflecting curated merchandise mix.
- Operating Margin: 5.5% — Recovered from 2022 inventory crisis.
- Private Label Penetration: 30%+ — Strong owned brands drive margin.
- Same-Store Sales: +1.5% — Modest growth in challenging environment.
Walmart Key Metrics
- Gross Margin: 24.5% — Lower margin, higher volume strategy.
- Operating Margin: 4.2% — Scale-driven profitability.
- Walmart+ Members: 25M+ — Growing subscription service.
- Advertising Revenue: $4B+ — Fast-growing high-margin business.
Which Company is a Better Investment?
Walmart offers superior scale, diversification, and momentum with growing advertising and e-commerce revenue. Target provides turnaround potential if it can recapture discretionary spending but faces more execution risk. Consider each company’s competitive position against Amazon. Review the full Target revenue breakdown and Walmart revenue breakdown for detailed analysis.
Disclaimer: This comparison is for informational purposes only and does not constitute investment advice.