With (NYSE: TGT) stock rising following its recent earnings report and Walmart's (NYSE: WMT) falling after its own, it's a good time to examine the two stocks. Is Target stock really the one that should have appreciated this week? After all, the stock looks much cheaper than Walmart's on a valuation basis.

The reality is the two companies are very different from each other. One deserves to trade at a significantly higher premium -- and it's not Target. Here's why I don't think investors should be rushing to buy Target shares.

Glancing at Walmart's and Target's second-quarter earnings releases leads to one clear takeaway: Walmart is growing, and Target is contracting. Walmart's second-quarter revenue rose 5.7% year over year while Target's declined 4.9%. 

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Source Fool.com