Grocery Outlet Holding Corp. (GO) vs The Kroger Co. (KR)

Grocery Outlet Holding Corp. and The Kroger Co. are both Grocery Stores companies. The Kroger Co. is the larger, with a market value of $34.8B against $1.1B — 31.1× the size. Grocery Outlet Holding Corp. has negative trailing earnings, so its P/E is not meaningful; The Kroger Co. trades at 31.8×. Grocery Outlet Holding Corp. grew revenue faster over the last twelve months: 5.12% against −5.78%. The Kroger Co. has the higher net margin (0.73% vs −8.04%) and the higher return on invested capital (6.47% vs −18.7%). Across the 20 metrics below, The Kroger Co. leads on 11 and Grocery Outlet Holding Corp. on 9.

Valuation

Metric GO KR Grocery Stores median
P/E n/m 31.75 14.37
P/S 0.23 0.24 0.26
P/B 1.34 6.09 1.73
Price to free cash flow n/m 14.69 11.51
EV/EBITDA 23.10 8.46 6.40
EV/Sales 0.32 0.33 0.33
Earnings yield (34.96%) 3.15% 6.14%
Free cash flow yield (0.38%) 6.81% 7.48%

Profitability

Metric GO KR Grocery Stores median
Gross margin 29.99% 23.11% 27.60%
Operating margin (7.89%) 1.39% 1.94%
Net margin (8.04%) 0.73% 1.60%
Free cash flow margin (0.09%) 1.62% 1.64%
Return on equity (38.06%) 14.35% 8.97%
Return on assets (12.07%) 2.11% 3.10%
Return on invested capital (18.74%) 6.47% 5.82%

Growth

Metric GO KR Grocery Stores median
Revenue growth (TTM) 5.12% (5.78%) 3.48%
EPS growth (last fiscal year) (675.00%) (58.04%) —
Revenue growth, 5-year CAGR 8.39% 2.19% 5.16%
Net income growth, 5-year CAGR 0.00% (17.04%) 0.00%

Health

Metric GO KR Grocery Stores median
Debt to equity 0.62 2.91 0.46
Current ratio 1.29 0.70 1.11
Net debt to EBITDA 7.22 2.24 0.46

Dividend

Metric GO KR Grocery Stores median
Dividend yield — 2.40% 2.20%
Payout ratio 0.00 0.46 0.13

Size

Metric GO KR Grocery Stores median
Market cap 1.12b 34.84b 1.19b

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