Dollar General Corporation (DG) vs BBB Foods Inc. (TBBB)

Dollar General Corporation and BBB Foods Inc. are both Discount Stores companies. Dollar General Corporation is the larger, with a market value of $27.2B against $5.8B — 4.7× the size. BBB Foods Inc. has negative trailing earnings, so its P/E is not meaningful; Dollar General Corporation trades at 16.2×. BBB Foods Inc. grew revenue faster over the last twelve months: 48.3% against 4.77%. Dollar General Corporation has the higher net margin (3.90% vs −3.61%) and the higher return on invested capital (12.4% vs −3.83%). Across the 19 metrics below, Dollar General Corporation leads on 18 and BBB Foods Inc. on 1.

Valuation

Metric DG TBBB Discount Stores median
P/E 16.15 n/m 19.55
P/S 0.63 1.25 1.08
P/B 2.97 18.42 5.43
Price to free cash flow 13.66 34.94 33.31
EV/EBITDA 8.66 1,115.12 12.17
EV/Sales 0.70 1.35 1.06
Earnings yield 6.19% (3.01%) 3.95%
Free cash flow yield 7.32% 2.86% 2.93%

Profitability

Metric DG TBBB Discount Stores median
Gross margin 31.16% 16.37% 27.27%
Operating margin 5.59% (1.00%) 4.45%
Net margin 3.90% (3.61%) 3.01%
Free cash flow margin 4.62% 3.59% 3.30%
Return on equity 19.69% (65.81%) 20.83%
Return on assets 5.34% (10.76%) 7.60%
Return on invested capital 12.43% (3.83%) 13.21%

Growth

Metric DG TBBB Discount Stores median
Revenue growth (TTM) 4.77% 48.34% 8.64%
EPS growth (last fiscal year) 34.05% (1,092.31%) —
Revenue growth, 5-year CAGR 4.83% — 4.99%
Net income growth, 5-year CAGR (10.65%) — 0.00%

Health

Metric DG TBBB Discount Stores median
Debt to equity 0.49 2.42 0.39
Current ratio 1.21 0.68 1.03
Net debt to EBITDA 1.06 44.29 0.59

Dividend

Metric DG TBBB Discount Stores median
Dividend yield 1.65% — 2.12%
Payout ratio 0.23 — 0.24

Size

Metric DG TBBB Discount Stores median
Market cap 27.22b 5.77b 16.44b

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