Target and Walmart both released Q2 results, with Walmart outperforming due to digital strength and a surge in e-commerce sales, while Target struggles with weaker demand for discretionary items. Walmart’s Q2 sales were $177.4 billion, up 5% year over year, while Target’s sales were $25.11 billion, down from last year.

Walmart raised its full-year revenue growth guidance to 3.75%-4.75% and adjusted EPS guidance to $2.52-$2.62, while Target maintained a low-single-digit decline in full-year sales and adjusted EPS between $7.00-9.00. Target’s CEO will step down in February, with the current COO taking over.

Despite challenges, Target’s stock is trading at a discount with a generous dividend yield of 4.7%, compared to Walmart’s 0.96%. Income and value investors may prefer Target, while growth-focused investors may lean towards Walmart. Walmart’s operational performance currently surpasses Target’s, but both offer unique advantages for investors.

Read more at Nasdaq: Is Walmart Stock Clearly the Better Investment Than Target’s After Q2 Results?