Dollar General Corporation (DG) vs PriceSmart, Inc. (PSMT)

Dollar General Corporation and PriceSmart, Inc. are both Discount Stores companies. Dollar General Corporation is the larger, with a market value of $29.5B against $5.2B — 5.6× the size. Dollar General Corporation trades at the lower P/E: 17.4× against 32.6×. PriceSmart, Inc. grew revenue faster over the last twelve months: 10.2% against 4.77%. Dollar General Corporation has the higher net margin (3.90% vs 2.77%) and the lower return on invested capital (12.4% vs 12.9%). Both pay a dividend; Dollar General Corporation yields more (1.76% vs 0.82%). Across the 23 metrics below, Dollar General Corporation leads on 15 and PriceSmart, Inc. on 8.

Valuation

Metric DG PSMT Discount Stores median
P/E 17.38 32.59 21.47
P/S 0.68 0.90 1.18
P/B 3.19 3.69 5.93
Price to free cash flow 14.70 62.35 36.39
EV/EBITDA 9.25 14.14 13.49
EV/Sales 0.75 0.88 1.09
Earnings yield 5.75% 3.07% 3.79%
Free cash flow yield 6.80% 1.60% 2.71%

Profitability

Metric DG PSMT Discount Stores median
Gross margin 31.16% 17.63% 27.27%
Operating margin 5.59% 4.51% 4.45%
Net margin 3.90% 2.77% 3.02%
Free cash flow margin 4.62% 1.45% 3.35%
Return on equity 19.69% 12.08% 20.83%
Return on assets 5.34% 6.75% 7.60%
Return on invested capital 12.43% 12.91% 13.21%

Growth

Metric DG PSMT Discount Stores median
Revenue growth (TTM) 4.77% 10.18% 8.64%
EPS growth (last fiscal year) 34.05% 5.47% 11.39%
Revenue growth, 5-year CAGR 4.83% 9.62% 4.99%
Net income growth, 5-year CAGR (10.65%) 13.15% 0.00%

Health

Metric DG PSMT Discount Stores median
Debt to equity 0.49 0.13 0.39
Current ratio 1.21 1.28 1.02
Net debt to EBITDA 1.06 (0.39) 0.59

Dividend

Metric DG PSMT Discount Stores median
Dividend yield 1.76% 0.82% 1.03%
Payout ratio 0.31 0.27 0.31

Size

Metric DG PSMT Discount Stores median
Market cap 29.54b 5.24b 18.19b

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