Walmart’s stock is trading at a discount of 18% to the consumer staples sector considering its forward price to earnings (P/E) multiple of 14x. Its P/E multiple is slightly higher than Target’s, but lower than Costco’s due to the latter’s higher revenue growth rate.

P&G is focusing on BRIC countries and other developing markets following substantial growth in net sales in these regions. Its revenues from the BRIC countries have grown annually in the range of 17% to 27% over the last decade. The improvement in Brazil’s economic growth rate is a positive sign for the company; however, the downtrend in growth rates of Russia, India and China could be a challenge. Other catalysts include change in strategies and product innovation led by the management, and the company’s $10 billion savings plan implemented since February 2012.

The majority (84.5%) of P&G’s total outstanding shares is held by investment advisors; this is followed by insurance companies, who hold 5.2%. Hedge Funds have reduced their holdings in P&G this year while insurance companies have increased their share of holding. Insiders hold just 0.1% of the company’s total shares. A few insiders have exercised their options to buy the company’s stock and sell it in the open market.