MSC Industrial Direct Company, Inc. (MSM) vs QXO, Inc. (QXO)

MSC Industrial Direct Company, Inc. and QXO, Inc. are both Industrial Distribution companies. QXO, Inc. is the larger, with a market value of $12.8B against $6.7B — 1.9× the size. QXO, Inc. has negative trailing earnings, so its P/E is not meaningful; MSC Industrial Direct Company, Inc. trades at 29.3×. QXO, Inc. grew revenue faster over the last twelve months: 408.3% against 4.41%. MSC Industrial Direct Company, Inc. has the higher net margin (5.91% vs −6.63%) and the higher return on invested capital (11.2% vs −1.53%). Across the 21 metrics below, MSC Industrial Direct Company, Inc. leads on 14 and QXO, Inc. on 7.

Valuation

Metric MSM QXO Industrial Distribution median
P/E 29.28 n/m 28.81
P/S 1.73 0.96 1.10
P/B 4.77 1.02 3.59
Price to free cash flow 30.63 67.87 22.50
EV/EBITDA 16.66 36.85 15.13
EV/Sales 1.84 1.31 1.31
Earnings yield 3.42% (7.24%) 3.16%
Free cash flow yield 3.26% 1.47% 3.85%

Profitability

Metric MSM QXO Industrial Distribution median
Gross margin 40.82% 24.03% 30.34%
Operating margin 8.50% (3.40%) 8.06%
Net margin 5.91% (6.63%) 4.95%
Free cash flow margin 5.65% 1.43% 4.67%
Return on equity 16.54% (7.22%) 14.29%
Return on assets 9.30% (3.30%) 5.30%
Return on invested capital 11.21% (1.53%) 8.13%

Growth

Metric MSM QXO Industrial Distribution median
Revenue growth (TTM) 4.41% 408.30% 7.80%
EPS growth (last fiscal year) (22.05%) (472.73%) —
Revenue growth, 5-year CAGR 3.38% 177.98% 9.01%
Net income growth, 5-year CAGR (4.51%) 0.00% 0.99%

Health

Metric MSM QXO Industrial Distribution median
Debt to equity 0.36 0.59 0.53
Current ratio 1.55 4.11 2.47
Net debt to EBITDA 1.09 4.52 1.17

Dividend

Metric MSM QXO Industrial Distribution median
Dividend yield 3.39% — 1.54%
Payout ratio 0.49 0.00 0.00

Size

Metric MSM QXO Industrial Distribution median
Market cap 6.74b 12.75b 5.60b

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