Comparing Wal-Mart de México (OTCMKTS:WMMVY) and Pan Pacific International (OTCMKTS:DQJCY)

Pan Pacific International (OTCMKTS:DQJCY) and Wal-Mart de México (OTCMKTS:WMMVY) are both consumer defensive companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a summary of current ratings and price targets for Pan Pacific International and Wal-Mart de México, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pan Pacific International	0	0	0	0	N/A
Wal-Mart de México	0	0	1	0	3.00

Dividends

Pan Pacific International pays an annual dividend of $103.09 per share and has a dividend yield of 427.5%. Wal-Mart de México pays an annual dividend of $0.97 per share and has a dividend yield of 3.4%. Pan Pacific International pays out 12.7% of its earnings in the form of a dividend. Wal-Mart de México pays out 54.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Pan Pacific International is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

0.0% of Pan Pacific International shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Pan Pacific International and Wal-Mart de México”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pan Pacific International	N/A	N/A	N/A	$812.19	0.03
Wal-Mart de México	$49.69 billion	1.01	$2.91 billion	$1.77	16.21

Wal-Mart de México has higher revenue and earnings than Pan Pacific International. Pan Pacific International is trading at a lower price-to-earnings ratio than Wal-Mart de México, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Pan Pacific International and Wal-Mart de México’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pan Pacific International	N/A	N/A	N/A
Wal-Mart de México	5.91%	27.32%	12.41%

Summary

Wal-Mart de México beats Pan Pacific International on 6 of the 10 factors compared between the two stocks.

About Pan Pacific International

Pan Pacific International Holdings Corporation, together with its subsidiaries, operates retail stores. The company operates discount stores under the Don Quijote, MEGA Don Quijote, and MEGA Don Quijote UNY, and Nagasakiya names; and general merchandise stores under the Apita and Piago names. It is also involved in leasing space management; tenant leasing; real estate development; general wholesale; provision of logistic services and internet services; and development and procurement of products and control of production. In addition, the company operates retail stores under the Kyoyosudo, Picasso, Don Quijote USA, Gelson's, Marukai, Don Don Donki, and Times names, as well as under the private brand names, including JONETZ, Style One, Prime One, and eco!on. The company was formerly known as Don Quijote Holdings Co., Ltd. and changed its name to Pan Pacific International Holdings Corporation in February 2019. Pan Pacific International Holdings Corporation was incorporated in 1980 and is headquartered in Tokyo, Japan.

About Wal-Mart de México

Wal-Mart de México, S.A.B. de C.V. owns and operates self-service stores in Mexico and Central America. The company operates discount warehouses and stores, hypermarkets, supermarkets, and membership self-service wholesale stores. It operates Bodega Aurrerá discount stores, Walmart hypermarkets, Walmart Express supermarkets, and Sam’s Club membership self-service wholesale stores. The company operates Despensa Familiar and Palí discount stores; Paiz, La Despensa de Don Juan, La Unión, and Más x Menos supermarkets; Bodegas, Maxi Bodega, and Maxi Palí stores; and Walmart hypermarkets in Costa Rica, Guatemala, Honduras, Nicaragua, and El Salvador. In addition, it imports and sells goods; develops properties; and manages real estate companies. The company was founded in 1958 and is headquartered in Mexico City, Mexico. Wal-Mart de México, S.A.B. de C.V. operates as a subsidiary of Intersalt, S. De R.l. De C.v.