BJ's Wholesale Club Holdings, Inc. (BJ) vs PriceSmart, Inc. (PSMT)

BJ's Wholesale Club Holdings, Inc. and PriceSmart, Inc. are both Discount Stores companies. BJ's Wholesale Club Holdings, Inc. is the larger, with a market value of $11.6B against $5.3B — 2.2× the size. BJ's Wholesale Club Holdings, Inc. trades at the lower P/E: 20.3× against 33.5×. PriceSmart, Inc. grew revenue faster over the last twelve months: 10.2% against 9.09%. PriceSmart, Inc. has the higher net margin (2.77% vs 2.61%) and the lower return on invested capital (12.9% vs 19.2%). Across the 22 metrics below, BJ's Wholesale Club Holdings, Inc. leads on 13 and PriceSmart, Inc. on 9.

Valuation

Metric BJ PSMT Discount Stores median
P/E 20.34 33.54 19.55
P/S 0.52 0.93 1.08
P/B 5.43 3.79 5.43
Price to free cash flow 33.31 64.15 33.31
EV/EBITDA 10.80 14.56 12.17
EV/Sales 0.55 0.90 1.06
Earnings yield 4.92% 2.98% 3.95%
Free cash flow yield 3.00% 1.56% 2.93%

Profitability

Metric BJ PSMT Discount Stores median
Gross margin 18.24% 17.63% 27.27%
Operating margin 3.76% 4.51% 4.45%
Net margin 2.61% 2.77% 3.01%
Free cash flow margin 1.57% 1.45% 3.30%
Return on equity 27.67% 12.08% 20.83%
Return on assets 7.81% 6.75% 7.60%
Return on invested capital 19.15% 12.91% 13.21%

Growth

Metric BJ PSMT Discount Stores median
Revenue growth (TTM) 9.09% 10.18% 8.64%
EPS growth (last fiscal year) 9.50% 5.47% —
Revenue growth, 5-year CAGR 6.82% 9.62% 4.99%
Net income growth, 5-year CAGR 6.56% 13.15% 0.00%

Health

Metric BJ PSMT Discount Stores median
Debt to equity 0.29 0.13 0.39
Current ratio 0.73 1.28 1.03
Net debt to EBITDA 0.43 (0.39) 0.59

Dividend

Metric BJ PSMT Discount Stores median
Dividend yield — 1.26% 2.12%
Payout ratio 0.00 0.24 0.24

Size

Metric BJ PSMT Discount Stores median
Market cap 11.60b 5.34b 16.44b

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