ARKO Corp. (ARKO) vs Betterware de Mexico SAPI de C (BWMX)

ARKO Corp. and Betterware de Mexico SAPI de C are both Specialty Retail companies. Betterware de Mexico SAPI de C is the larger, with a market value of $612.7M against $474.6M — 1.3× the size. Betterware de Mexico SAPI de C trades at the lower P/E: 9.1× against 53.5×. Betterware de Mexico SAPI de C grew revenue faster over the last twelve months: 15.1% against −2.05%. Betterware de Mexico SAPI de C has the higher net margin (8.43% vs 0.11%) and the higher return on invested capital (15.7% vs 5.70%). Both pay a dividend; Betterware de Mexico SAPI de C yields more (7.08% vs 1.49%). Across the 23 metrics below, Betterware de Mexico SAPI de C leads on 17 and ARKO Corp. on 6.

Valuation

Metric ARKO BWMX Specialty Retail median
P/E 53.50 9.15 17.14
P/S 0.06 0.80 0.48
P/B 1.02 5.05 1.71
Price to free cash flow 10.86 4.86 13.04
EV/EBITDA 5.16 6.83 8.92
EV/Sales 0.14 1.29 0.64
Earnings yield 1.87% 10.93% 3.85%
Free cash flow yield 9.21% 20.59% 3.02%

Profitability

Metric ARKO BWMX Specialty Retail median
Gross margin 14.68% 66.13% 37.89%
Operating margin 1.23% 16.35% 3.66%
Net margin 0.11% 8.43% 1.42%
Free cash flow margin 0.56% 16.42% 1.44%
Return on equity 2.46% 73.16% 2.58%
Return on assets 0.25% 10.07% 0.25%
Return on invested capital 5.70% 15.72% 0.00%

Growth

Metric ARKO BWMX Specialty Retail median
Revenue growth (TTM) (2.05%) 15.10% 3.35%
EPS growth (last fiscal year) 15.38% 39.05% —
Revenue growth, 5-year CAGR 0.60% 16.90% 3.70%
Net income growth, 5-year CAGR (20.49%) 28.39% 0.00%

Health

Metric ARKO BWMX Specialty Retail median
Debt to equity 1.85 3.35 0.27
Current ratio 1.60 1.11 1.35
Net debt to EBITDA 3.59 1.51 0.24

Dividend

Metric ARKO BWMX Specialty Retail median
Dividend yield 1.49% 7.08% 1.73%
Payout ratio 0.31 0.62 0.00

Size

Metric ARKO BWMX Specialty Retail median
Market cap 474.55m 612.66m 348.57m

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