Costco Wholesale Corporation (COST) vs Ollie's Bargain Outlet Holdings, Inc. (OLLI)

Costco Wholesale Corporation and Ollie's Bargain Outlet Holdings, Inc. are both Discount Stores companies. Costco Wholesale Corporation is the larger, with a market value of $403.5B against $5.1B — 79.3× the size. Ollie's Bargain Outlet Holdings, Inc. trades at the lower P/E: 19.5× against 44.1×. Ollie's Bargain Outlet Holdings, Inc. grew revenue faster over the last twelve months: 14.4% against 10.1%. Ollie's Bargain Outlet Holdings, Inc. has the higher net margin (9.79% vs 3.04%) and the lower return on invested capital (12.5% vs 35.3%). Across the 22 metrics below, Ollie's Bargain Outlet Holdings, Inc. leads on 14 and Costco Wholesale Corporation on 8.

Valuation

Metric COST OLLI Discount Stores median
P/E 44.06 19.54 19.99
P/S 1.34 1.89 1.09
P/B 11.35 2.79 5.46
Price to free cash flow 43.29 23.60 33.47
EV/EBITDA 28.38 12.70 12.70
EV/Sales 1.29 1.83 1.03
Earnings yield 2.27% 5.12% 4.00%
Free cash flow yield 2.31% 4.24% 2.97%

Profitability

Metric COST OLLI Discount Stores median
Gross margin 12.82% 41.63% 27.27%
Operating margin 3.85% 12.26% 4.45%
Net margin 3.04% 9.79% 3.02%
Free cash flow margin 3.10% 8.02% 3.35%
Return on equity 28.40% 14.86% 20.83%
Return on assets 11.11% 9.39% 7.60%
Return on invested capital 35.34% 12.52% 13.21%

Growth

Metric COST OLLI Discount Stores median
Revenue growth (TTM) 10.14% 14.43% 8.64%
EPS growth (last fiscal year) 14.00% 20.43% 11.39%
Revenue growth, 5-year CAGR 9.12% 7.93% 4.99%
Net income growth, 5-year CAGR 13.00% (0.17%) 0.00%

Health

Metric COST OLLI Discount Stores median
Debt to equity 0.17 0.00 0.39
Current ratio 1.06 2.23 1.02
Net debt to EBITDA (1.05) (0.84) 0.59

Dividend

Metric COST OLLI Discount Stores median
Dividend yield 0.61% — 1.17%
Payout ratio 0.27 — 0.38

Size

Metric COST OLLI Discount Stores median
Market cap 403.53b 5.09b 16.51b

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