Grocery Outlet Holding Corp. (GO) vs Weis Markets, Inc. (WMK)

Grocery Outlet Holding Corp. and Weis Markets, Inc. are both Grocery Stores companies. Weis Markets, Inc. is the larger, with a market value of $1.8B against $1.1B — 1.6× the size. Grocery Outlet Holding Corp. has negative trailing earnings, so its P/E is not meaningful; Weis Markets, Inc. trades at 17.9×. Grocery Outlet Holding Corp. grew revenue faster over the last twelve months: 5.12% against 4.67%. Weis Markets, Inc. has the higher net margin (1.96% vs −8.04%) and the higher return on invested capital (6.92% vs −18.7%). Across the 20 metrics below, Weis Markets, Inc. leads on 14 and Grocery Outlet Holding Corp. on 6.

Valuation

Metric GO WMK Grocery Stores median
P/E n/m 17.87 14.37
P/S 0.23 0.35 0.26
P/B 1.34 1.29 1.73
Price to free cash flow n/m 35.17 11.51
EV/EBITDA 23.10 6.59 6.40
EV/Sales 0.32 0.33 0.33
Earnings yield (34.96%) 5.60% 6.14%
Free cash flow yield (0.38%) 2.84% 7.48%

Profitability

Metric GO WMK Grocery Stores median
Gross margin 29.99% 25.52% 27.60%
Operating margin (7.89%) 2.49% 1.94%
Net margin (8.04%) 1.96% 1.60%
Free cash flow margin (0.09%) 1.00% 1.64%
Return on equity (38.06%) 7.33% 8.97%
Return on assets (12.07%) 4.97% 3.10%
Return on invested capital (18.74%) 6.92% 5.82%

Growth

Metric GO WMK Grocery Stores median
Revenue growth (TTM) 5.12% 4.67% 3.48%
EPS growth (last fiscal year) (675.00%) (10.76%) —
Revenue growth, 5-year CAGR 8.39% 3.81% 5.16%
Net income growth, 5-year CAGR 0.00% (4.66%) 0.00%

Health

Metric GO WMK Grocery Stores median
Debt to equity 0.62 0.00 0.46
Current ratio 1.29 2.03 1.11
Net debt to EBITDA 7.22 (1.04) 0.46

Dividend

Metric GO WMK Grocery Stores median
Dividend yield — 2.24% 2.20%
Payout ratio 0.00 0.31 0.13

Size

Metric GO WMK Grocery Stores median
Market cap 1.12b 1.79b 1.19b

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