BJ's Wholesale Club Holdings, Inc. (BJ) vs BBB Foods Inc. (TBBB)

BJ's Wholesale Club Holdings, Inc. and BBB Foods Inc. are both Discount Stores companies. BJ's Wholesale Club Holdings, Inc. is the larger, with a market value of $11.6B against $5.8B — 2.0× the size. BBB Foods Inc. has negative trailing earnings, so its P/E is not meaningful; BJ's Wholesale Club Holdings, Inc. trades at 20.3×. BBB Foods Inc. grew revenue faster over the last twelve months: 48.3% against 9.09%. BJ's Wholesale Club Holdings, Inc. has the higher net margin (2.61% vs −3.61%) and the higher return on invested capital (19.2% vs −3.83%). Across the 19 metrics below, BJ's Wholesale Club Holdings, Inc. leads on 17 and BBB Foods Inc. on 2.

Valuation

Metric BJ TBBB Discount Stores median
P/E 20.34 n/m 19.55
P/S 0.52 1.25 1.08
P/B 5.43 18.42 5.43
Price to free cash flow 33.31 34.94 33.31
EV/EBITDA 10.80 1,115.12 12.17
EV/Sales 0.55 1.35 1.06
Earnings yield 4.92% (3.01%) 3.95%
Free cash flow yield 3.00% 2.86% 2.93%

Profitability

Metric BJ TBBB Discount Stores median
Gross margin 18.24% 16.37% 27.27%
Operating margin 3.76% (1.00%) 4.45%
Net margin 2.61% (3.61%) 3.01%
Free cash flow margin 1.57% 3.59% 3.30%
Return on equity 27.67% (65.81%) 20.83%
Return on assets 7.81% (10.76%) 7.60%
Return on invested capital 19.15% (3.83%) 13.21%

Growth

Metric BJ TBBB Discount Stores median
Revenue growth (TTM) 9.09% 48.34% 8.64%
EPS growth (last fiscal year) 9.50% (1,092.31%) —
Revenue growth, 5-year CAGR 6.82% — 4.99%
Net income growth, 5-year CAGR 6.56% — 0.00%

Health

Metric BJ TBBB Discount Stores median
Debt to equity 0.29 2.42 0.39
Current ratio 0.73 0.68 1.03
Net debt to EBITDA 0.43 44.29 0.59

Dividend

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

Size

Metric BJ TBBB Discount Stores median
Market cap 11.60b 5.77b 16.44b

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