Walmart Inc (NYSE:WMT) shares soared to an all-time high on Thursday after reporting a higher-than-expected $5.1 billion in net income and revenue growth. The Arkansas-based retail giant is the largest company in the world by revenue, according to Fortune. JPMorgan Chase & Co (NYSE:JPM) enjoys a similar status as one of the largest companies in the world. Amid Walmart's earnings beat, how does it compare to Fortune 500 peer JPMorgan?
Walmart Q1 Results: Walmart reported sales of $161.5 billion in the first quarter, up 6% year-over-year. After its cost of sales and SG&A, the company arrived at an operating income of $6.84 billion, up 9.6% year-over-year.
Reporting net income of $5.1 billion, Walmart's adjusted earnings-per-share were 60 cents, beating analyst estimates of 52 cents.
JPMorgan Q1 Results: J.P. Morgan's reported revenue of $42.5 billion in the first quarter may seem measly compared to Walmart. However, the company arrived at a much higher net income of $13.4 billion. The company's earnings-per-share were $4.44, beating the consensus of $4.15.
JPMorgan earns Walmart's $5.1 billion in a mere 34 days.
It's All in The Margins: JPMorgan's net margins were 31.5% in the first quarter compared to Walmart's 3.16%. This is unsurprising given the inherent differences between the retail industry and the financial services industry.
Walmart has a large overhead. With a self-reported 2.1 million employees, the company is the largest private employer in the world, according to Fortune. Meanwhile, JPMorgan's 311,921 employees seem paltry in comparison.
The immense competition in the retail space drives Walmart's prices, and margins, down. Walmart has optimized its supply chain using technology and automation in its fulfillment center network. While this is expensive, it allows Walmart to compete with virtually every retailer on price, maintain its industry position and score sky-high revenue.
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