Kroger Company (KR)vsTarget Corporation (TGT)
KR
Kroger Company
$73.22
+1.99%
CONSUMER DEFENSIVE · Cap: $44.96B
TGT
Target Corporation
$119.84
+2.43%
CONSUMER DEFENSIVE · Cap: $54.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Kroger Company generates 41% more annual revenue ($147.64B vs $104.78B). TGT leads profitability with a 3.5% profit margin vs 0.7%. KR appears more attractively valued with a PEG of 1.73. KR earns a higher WallStSmart Score of 55/100 (C).
KR
Buy55
out of 100
Grade: C
TGT
Hold46
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+4.7%
Fair Value
$72.07
Current Price
$73.22
$1.15 discount
Margin of Safety
-107.3%
Fair Value
$55.28
Current Price
$119.84
$64.56 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 50.1% YoY
Safe zone — low bankruptcy risk
Generating 1.8B 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
Expensive relative to growth rate
1.2% revenue growth
0.7% margin — thin
Operating margin of 3.5%
3.5% margin — thin
Operating margin of 4.9%
Expensive relative to growth rate
Revenue declined 1.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : KR
The strongest argument for KR centers on EPS Growth, Altman Z-Score, Free Cash Flow.
Bull Case : TGT
The strongest argument for TGT centers on Market Cap, Return on Equity, P/E Ratio.
Bear Case : KR
The primary concerns for KR are PEG Ratio, Revenue Growth, Profit Margin. A P/E of 47.5x leaves little room for execution misses. Thin 0.7% margins leave little buffer for downturns.
Bear Case : TGT
The primary concerns for TGT are Profit Margin, Operating Margin, PEG Ratio. Thin 3.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
TGT carries more volatility with a beta of 1.10 — expect wider price swings.
KR is growing revenue faster at 1.2% — sustainability is the question.
TGT generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor GROCERY STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
KR scores higher overall (55/100 vs 46/100). 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.
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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