Dollar Tree, Inc. (DLTR) vs BBB Foods Inc. (TBBB)

Dollar Tree, Inc. and BBB Foods Inc. are both Discount Stores companies. Dollar Tree, Inc. is the larger, with a market value of $21.3B against $5.8B — 3.7× the size. BBB Foods Inc. has negative trailing earnings, so its P/E is not meaningful; Dollar Tree, Inc. trades at 13.9×. BBB Foods Inc. grew revenue faster over the last twelve months: 48.3% against 8.18%. Dollar Tree, Inc. has the higher net margin (8.03% vs −3.61%) and the higher return on invested capital (26.0% vs −3.83%). Across the 19 metrics below, Dollar Tree, Inc. leads on 18 and BBB Foods Inc. on 1.

Valuation

Metric DLTR TBBB Discount Stores median
P/E 13.91 n/m 19.55
P/S 1.08 1.25 1.08
P/B 6.35 18.42 5.43
Price to free cash flow 10.99 34.94 33.31
EV/EBITDA 8.38 1,115.12 12.17
EV/Sales 1.21 1.35 1.06
Earnings yield 7.19% (3.01%) 3.95%
Free cash flow yield 9.10% 2.86% 2.93%

Profitability

Metric DLTR TBBB Discount Stores median
Gross margin 38.74% 16.37% 27.27%
Operating margin 10.97% (1.00%) 4.45%
Net margin 8.03% (3.61%) 3.01%
Free cash flow margin 9.85% 3.59% 3.30%
Return on equity 45.87% (65.81%) 20.83%
Return on assets 11.76% (10.76%) 7.60%
Return on invested capital 25.96% (3.83%) 13.21%

Growth

Metric DLTR TBBB Discount Stores median
Revenue growth (TTM) 8.18% 48.34% 8.64%
EPS growth (last fiscal year) 144.33% (1,092.31%) —
Revenue growth, 5-year CAGR (5.32%) — 4.99%
Net income growth, 5-year CAGR (0.90%) — 0.00%

Health

Metric DLTR TBBB Discount Stores median
Debt to equity 0.86 2.42 0.39
Current ratio 1.13 0.68 1.03
Net debt to EBITDA 0.74 44.29 0.59

Dividend

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

Size

Metric DLTR TBBB Discount Stores median
Market cap 21.27b 5.77b 16.44b

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