Costco Wholesale Corporation (COST) vs BBB Foods Inc. (TBBB)

Costco Wholesale Corporation and BBB Foods Inc. are both Discount Stores companies. Costco Wholesale Corporation is the larger, with a market value of $396.7B against $5.8B — 68.7× the size. BBB Foods Inc. has negative trailing earnings, so its P/E is not meaningful; Costco Wholesale Corporation trades at 46.3×. BBB Foods Inc. grew revenue faster over the last twelve months: 48.3% against 9.23%. Costco Wholesale Corporation has the higher net margin (3.01% vs −3.61%) and the higher return on invested capital (36.6% vs −3.83%). Across the 19 metrics below, Costco Wholesale Corporation leads on 13 and BBB Foods Inc. on 6.

Valuation

Metric COST TBBB Discount Stores median
P/E 46.30 n/m 19.55
P/S 1.39 1.25 1.08
P/B 12.21 18.42 5.43
Price to free cash flow 46.47 34.94 33.31
EV/EBITDA 28.65 1,115.12 12.17
EV/Sales 1.35 1.35 1.06
Earnings yield 2.16% (3.01%) 3.95%
Free cash flow yield 2.15% 2.86% 2.93%

Profitability

Metric COST TBBB Discount Stores median
Gross margin 12.88% 16.37% 27.27%
Operating margin 3.82% (1.00%) 4.45%
Net margin 3.01% (3.61%) 3.01%
Free cash flow margin 3.00% 3.59% 3.30%
Return on equity 29.15% (65.81%) 20.83%
Return on assets 10.92% (10.76%) 7.60%
Return on invested capital 36.57% (3.83%) 13.21%

Growth

Metric COST TBBB Discount Stores median
Revenue growth (TTM) 9.23% 48.34% 8.64%
EPS growth (last fiscal year) 9.96% (1,092.31%) —
Revenue growth, 5-year CAGR 10.54% — 4.99%
Net income growth, 5-year CAGR 15.14% — 0.00%

Health

Metric COST TBBB Discount Stores median
Debt to equity 0.17 2.42 0.39
Current ratio 1.07 0.68 1.03
Net debt to EBITDA (0.75) 44.29 0.59

Dividend

Metric COST TBBB Discount Stores median
Dividend yield 2.58% — 2.12%
Payout ratio 0.28 — 0.24

Size

Metric COST TBBB Discount Stores median
Market cap 396.68b 5.77b 16.44b

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