Target Corporation (TGT)vsUS Foods Holding Corp (USFD)
TGT
Target Corporation
$129.75
+1.47%
CONSUMER DEFENSIVE · Cap: $58.08B
USFD
US Foods Holding Corp
$93.49
+2.42%
CONSUMER DEFENSIVE · Cap: $20.13B
Smart Verdict
WallStSmart Research — data-driven comparison
Target Corporation generates 166% more annual revenue ($104.78B vs $39.42B). TGT leads profitability with a 3.5% profit margin vs 1.7%. USFD appears more attractively valued with a PEG of 0.24. USFD earns a higher WallStSmart Score of 64/100 (C+).
TGT
Hold48
out of 100
Grade: D+
USFD
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+33.2%
Fair Value
$171.60
Current Price
$129.75
$41.85 discount
Margin of Safety
+28.0%
Fair Value
$124.84
Current Price
$93.49
$31.35 discount
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
Growing faster than its price suggests
Earnings expanding 205.9% YoY
Safe zone — low bankruptcy risk
Areas to Watch
Expensive relative to growth rate
3.5% margin — thin
Operating margin of 4.9%
Revenue declined 1.5%
Premium valuation, high expectations priced in
3.3% revenue growth
1.7% margin — thin
Operating margin of 3.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : TGT
The strongest argument for TGT centers on Market Cap, Return on Equity, P/E Ratio.
Bull Case : USFD
The strongest argument for USFD centers on PEG Ratio, EPS Growth, Altman Z-Score. PEG of 0.24 suggests the stock is reasonably priced for its growth.
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 : USFD
The primary concerns for USFD are P/E Ratio, Revenue Growth, Profit Margin. Thin 1.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
TGT carries more volatility with a beta of 1.03 — expect wider price swings.
USFD is growing revenue faster at 3.3% — sustainability is the question.
TGT generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
USFD scores higher overall (64/100 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.
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.
US Foods Holding Corp
CONSUMER DEFENSIVE · FOOD DISTRIBUTION · USA
US Foods Holding Corp. The company is headquartered in Rosemont, Illinois.
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