MSC Industrial Direct Company, Inc. (MSM) vs WESCO International, Inc. (WCC)

MSC Industrial Direct Company, Inc. and WESCO International, Inc. are both Industrial Distribution companies. WESCO International, Inc. is the larger, with a market value of $17.9B against $6.7B — 2.7× the size. WESCO International, Inc. trades at the lower P/E: 25.4× against 29.3×. WESCO International, Inc. grew revenue faster over the last twelve months: 12.5% against 4.41%. MSC Industrial Direct Company, Inc. has the higher net margin (5.91% vs 2.86%) and the higher return on invested capital (11.2% vs 8.13%). Both pay a dividend; MSC Industrial Direct Company, Inc. yields more (3.39% vs 0.79%). Across the 23 metrics below, MSC Industrial Direct Company, Inc. leads on 12 and WESCO International, Inc. on 11.

Valuation

Metric MSM WCC Industrial Distribution median
P/E 29.28 25.39 28.81
P/S 1.73 0.72 1.10
P/B 4.77 3.44 3.59
Price to free cash flow 30.63 115.61 22.50
EV/EBITDA 16.66 14.76 15.13
EV/Sales 1.84 0.92 1.31
Earnings yield 3.42% 3.94% 3.16%
Free cash flow yield 3.26% 0.86% 3.85%

Profitability

Metric MSM WCC Industrial Distribution median
Gross margin 40.82% 21.40% 30.34%
Operating margin 8.50% 5.38% 8.06%
Net margin 5.91% 2.86% 4.95%
Free cash flow margin 5.65% 0.62% 4.67%
Return on equity 16.54% 14.35% 14.29%
Return on assets 9.30% 4.21% 5.30%
Return on invested capital 11.21% 8.13% 8.13%

Growth

Metric MSM WCC Industrial Distribution median
Revenue growth (TTM) 4.41% 12.51% 7.80%
EPS growth (last fiscal year) (22.05%) 0.00% —
Revenue growth, 5-year CAGR 3.38% 13.79% 9.01%
Net income growth, 5-year CAGR (4.51%) 55.77% 0.99%

Health

Metric MSM WCC Industrial Distribution median
Debt to equity 0.36 1.14 0.53
Current ratio 1.55 2.09 2.47
Net debt to EBITDA 1.09 3.59 1.17

Dividend

Metric MSM WCC Industrial Distribution median
Dividend yield 3.39% 0.79% 1.54%
Payout ratio 0.49 0.05 0.00

Size

Metric MSM WCC Industrial Distribution median
Market cap 6.74b 17.87b 5.60b

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