MSC Industrial Direct Company, Inc. (MSM) vs SiteOne Landscape Supply, Inc. (SITE)

MSC Industrial Direct Company, Inc. and SiteOne Landscape Supply, Inc. are both Industrial Distribution companies. MSC Industrial Direct Company, Inc. is the larger, with a market value of $6.7B against $4.0B — 1.7× the size. SiteOne Landscape Supply, Inc. trades at the lower P/E: 24.8× against 29.3×. MSC Industrial Direct Company, Inc. grew revenue faster over the last twelve months: 4.41% against 3.28%. MSC Industrial Direct Company, Inc. has the higher net margin (5.91% vs 3.41%) and the higher return on invested capital (11.2% vs 7.13%). Across the 22 metrics below, SiteOne Landscape Supply, Inc. leads on 13 and MSC Industrial Direct Company, Inc. on 9.

Valuation

Metric MSM SITE Industrial Distribution median
P/E 29.28 24.81 28.81
P/S 1.73 0.84 1.10
P/B 4.77 2.39 3.59
Price to free cash flow 30.63 15.40 22.50
EV/EBITDA 16.66 11.54 15.13
EV/Sales 1.84 0.95 1.31
Earnings yield 3.42% 4.03% 3.16%
Free cash flow yield 3.26% 6.49% 3.85%

Profitability

Metric MSM SITE Industrial Distribution median
Gross margin 40.82% 35.13% 30.34%
Operating margin 8.50% 5.28% 8.06%
Net margin 5.91% 3.41% 4.95%
Free cash flow margin 5.65% 5.48% 4.67%
Return on equity 16.54% 9.81% 14.29%
Return on assets 9.30% 4.75% 5.30%
Return on invested capital 11.21% 7.13% 8.13%

Growth

Metric MSM SITE Industrial Distribution median
Revenue growth (TTM) 4.41% 3.28% 7.80%
EPS growth (last fiscal year) (22.05%) 24.35% —
Revenue growth, 5-year CAGR 3.38% 11.71% 9.01%
Net income growth, 5-year CAGR (4.51%) 4.59% 0.99%

Health

Metric MSM SITE Industrial Distribution median
Debt to equity 0.36 0.36 0.53
Current ratio 1.55 2.30 2.47
Net debt to EBITDA 1.09 0.78 1.17

Dividend

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

Size

Metric MSM SITE Industrial Distribution median
Market cap 6.74b 4.00b 5.60b

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