Kroger Company (KR)vsTarget Corporation (TGT)
KR
Kroger Company
$58.49
+2.70%
CONSUMER DEFENSIVE · Cap: $35.04B
TGT
Target Corporation
$155.83
+0.06%
CONSUMER DEFENSIVE · Cap: $70.79B
Smart Verdict
WallStSmart Research — data-driven comparison
Kroger Company generates 38% more annual revenue ($148.65B vs $107.70B). TGT leads profitability with a 4.1% profit margin vs 0.7%. KR appears more attractively valued with a PEG of 0.57. TGT earns a higher WallStSmart Score of 66/100 (B-).
KR
Buy55
out of 100
Grade: C
TGT
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+22.4%
Fair Value
$72.78
Current Price
$58.49
$14.29 discount
Margin of Safety
+5.3%
Fair Value
$120.98
Current Price
$155.83
$34.85 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Earnings expanding 100.5% YoY
Large-cap with strong market position
Every $100 of equity generates 25 in profit
Attractively priced relative to earnings
Generating 2.4B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
2.2% revenue growth
0.7% margin — thin
Operating margin of 3.2%
Expensive relative to growth rate
4.1% margin — thin
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : KR
The strongest argument for KR centers on Altman Z-Score, PEG Ratio. PEG of 0.57 suggests the stock is reasonably priced for its growth.
Bull Case : TGT
The strongest argument for TGT centers on EPS Growth, Market Cap, Return on Equity.
Bear Case : KR
The primary concerns for KR are P/E Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 3.63 is elevated, increasing financial risk. Thin 0.7% margins leave little buffer for downturns.
Bear Case : TGT
The primary concerns for TGT are PEG Ratio, Profit Margin, Debt/Equity. Thin 4.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
TGT carries more volatility with a beta of 0.99 — expect wider price swings.
TGT is growing revenue faster at 5.3% — sustainability is the question.
TGT generates stronger free cash flow (2.4B), providing more financial flexibility.
Monitor GROCERY STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TGT scores higher overall (66/100 vs 55/100). KR offers better value entry with a 22.4% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Kroger Company
CONSUMER DEFENSIVE · GROCERY STORES · USA
The Kroger Company, or simply Kroger, is an American retail company founded by Bernard Kroger in 1883 in Cincinnati, Ohio.
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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