ARKO Corp. (ARKO) vs Winmark Corporation (WINA)

ARKO Corp. and Winmark Corporation are both Specialty Retail companies. Winmark Corporation is the larger, with a market value of $1.1B against $474.6M — 2.3× the size. Winmark Corporation trades at the lower P/E: 26.0× against 53.5×. Winmark Corporation grew revenue faster over the last twelve months: 3.76% against −2.05%. Winmark Corporation has the higher net margin (47.1% vs 0.11%) and the lower return on invested capital (0.00% vs 5.70%). Both pay a dividend; ARKO Corp. yields more (1.49% vs 0.64%). Across the 22 metrics below, Winmark Corporation leads on 13 and ARKO Corp. on 9.

Valuation

Metric ARKO WINA Specialty Retail median
P/E 53.50 25.97 17.14
P/S 0.06 12.27 0.48
P/B 1.02 n/m 1.71
Price to free cash flow 10.86 25.87 13.04
EV/EBITDA 5.16 20.12 8.92
EV/Sales 0.14 12.71 0.64
Earnings yield 1.87% 3.85% 3.85%
Free cash flow yield 9.21% 3.86% 3.02%

Profitability

Metric ARKO WINA Specialty Retail median
Gross margin 14.68% 96.66% 37.89%
Operating margin 1.23% 62.33% 3.66%
Net margin 0.11% 47.09% 1.42%
Free cash flow margin 0.56% 47.41% 1.44%
Return on equity 2.46% (109.44%) 2.58%
Return on assets 0.25% 94.36% 0.25%
Return on invested capital 5.70% 0.00% 0.00%

Growth

Metric ARKO WINA Specialty Retail median
Revenue growth (TTM) (2.05%) 3.76% 3.35%
EPS growth (last fiscal year) 15.38% 3.76% —
Revenue growth, 5-year CAGR 0.60% 5.43% 3.70%
Net income growth, 5-year CAGR (20.49%) 6.91% 0.00%

Health

Metric ARKO WINA Specialty Retail median
Debt to equity 1.85 (1.59) 0.27
Current ratio 1.60 3.75 1.35
Net debt to EBITDA 3.59 0.89 0.24

Dividend

Metric ARKO WINA Specialty Retail median
Dividend yield 1.49% 0.64% 1.73%
Payout ratio 0.31 0.26 0.00

Size

Metric ARKO WINA Specialty Retail median
Market cap 474.55m 1.07b 348.57m

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