Albertsons Companies, Inc. (ACI) vs Grocery Outlet Holding Corp. (GO)

Albertsons Companies, Inc. and Grocery Outlet Holding Corp. are both Grocery Stores companies. Albertsons Companies, Inc. is the larger, with a market value of $5.8B against $1.1B — 5.2× the size. Grocery Outlet Holding Corp. has negative trailing earnings, so its P/E is not meaningful; Albertsons Companies, Inc. trades at 146×. Grocery Outlet Holding Corp. grew revenue faster over the last twelve months: 5.12% against 2.75%. Albertsons Companies, Inc. has the higher net margin (0.08% vs −8.04%) and the higher return on invested capital (3.23% vs −18.7%). Across the 20 metrics below, Albertsons Companies, Inc. leads on 13 and Grocery Outlet Holding Corp. on 7.

Valuation

Metric ACI GO Grocery Stores median
P/E 145.88 n/m 14.37
P/S 0.07 0.23 0.26
P/B 3.58 1.34 1.73
Price to free cash flow 9.30 n/m 11.51
EV/EBITDA 4.57 23.10 6.40
EV/Sales 0.18 0.32 0.33
Earnings yield 0.69% (34.96%) 6.14%
Free cash flow yield 10.75% (0.38%) 7.48%

Profitability

Metric ACI GO Grocery Stores median
Gross margin 27.04% 29.99% 27.60%
Operating margin 0.65% (7.89%) 1.94%
Net margin 0.08% (8.04%) 1.60%
Free cash flow margin 0.75% (0.09%) 1.64%
Return on equity 2.72% (38.06%) 8.97%
Return on assets 0.25% (12.07%) 3.10%
Return on invested capital 3.23% (18.74%) 5.82%

Growth

Metric ACI GO Grocery Stores median
Revenue growth (TTM) 2.75% 5.12% 3.48%
EPS growth (last fiscal year) (75.61%) (675.00%) —
Revenue growth, 5-year CAGR 3.60% 8.39% 5.16%
Net income growth, 5-year CAGR (23.87%) 0.00% 0.00%

Health

Metric ACI GO Grocery Stores median
Debt to equity 5.68 0.62 0.46
Current ratio 0.84 1.29 1.11
Net debt to EBITDA 2.60 7.22 0.46

Dividend

Metric ACI GO Grocery Stores median
Dividend yield 2.16% — 2.20%
Payout ratio 0.22 0.00 0.13

Size

Metric ACI GO Grocery Stores median
Market cap 5.82b 1.12b 1.19b

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