Diageo PLC ADR (DEO)vsTarget Corporation (TGT)
DEO
Diageo PLC ADR
$80.65
+4.20%
CONSUMER DEFENSIVE · Cap: $44.08B
TGT
Target Corporation
$129.75
+1.47%
CONSUMER DEFENSIVE · Cap: $58.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Target Corporation generates 429% more annual revenue ($104.78B vs $19.80B). DEO leads profitability with a 12.2% profit margin vs 3.5%. DEO appears more attractively valued with a PEG of 0.73. DEO earns a higher WallStSmart Score of 56/100 (C).
DEO
Buy56
out of 100
Grade: C
TGT
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+56.5%
Fair Value
$231.62
Current Price
$80.65
$150.97 discount
Margin of Safety
+33.2%
Fair Value
$171.60
Current Price
$129.75
$41.85 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 31.3%
Growing faster than its price suggests
Generating 1.5B in free cash flow
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
Areas to Watch
2.9% earnings growth
Weak financial health signals
Trading at 69.5x book value
Revenue declined 4.0%
Expensive relative to growth rate
3.5% margin — thin
Operating margin of 4.9%
Revenue declined 1.5%
Comparative Analysis Report
WallStSmart ResearchBull 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 : TGT
The strongest argument for TGT centers on Market Cap, Return on Equity, P/E Ratio.
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 : TGT
The primary concerns for TGT are PEG Ratio, Profit Margin, Operating Margin. Thin 3.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
DEO profiles as a declining stock while TGT is a value play — different risk/reward profiles.
TGT carries more volatility with a beta of 1.03 — expect wider price swings.
TGT is growing revenue faster at -1.5% — sustainability is the question.
TGT generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
DEO scores higher overall (56/100 vs 48/100). 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.
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.
Visit Website →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.
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