Murphy USA Inc. (MUSA) vs Tractor Supply Company (TSCO)

Murphy USA Inc. and Tractor Supply Company are both Specialty Retail companies. Tractor Supply Company is the larger, with a market value of $16.6B against $9.5B — 1.8× the size. Murphy USA Inc. trades at the lower P/E: 15.4× against 16.8×. Murphy USA Inc. grew revenue faster over the last twelve months: 10.3% against 3.98%. Tractor Supply Company has the higher net margin (6.42% vs 2.87%) and the lower return on invested capital (18.2% vs 20.6%). Both pay a dividend; Tractor Supply Company yields more (1.90% vs 0.41%). Across the 23 metrics below, Murphy USA Inc. leads on 12 and Tractor Supply Company on 11.

Valuation

Metric MUSA TSCO Specialty Retail median
P/E 15.44 16.81 17.14
P/S 0.44 1.07 0.48
P/B 12.05 6.42 1.71
Price to free cash flow 17.38 28.64 13.04
EV/EBITDA 9.47 10.40 8.92
EV/Sales 0.53 1.22 0.64
Earnings yield 6.48% 5.95% 3.85%
Free cash flow yield 5.76% 3.49% 3.02%

Profitability

Metric MUSA TSCO Specialty Retail median
Gross margin 12.22% 36.46% 37.89%
Operating margin 4.29% 8.51% 3.66%
Net margin 2.87% 6.42% 1.42%
Free cash flow margin 2.53% 3.75% 1.44%
Return on equity 86.39% 39.51% 2.58%
Return on assets 12.72% 8.91% 0.25%
Return on invested capital 20.62% 18.23% 0.00%

Growth

Metric MUSA TSCO Specialty Retail median
Revenue growth (TTM) 10.27% 3.98% 3.35%
EPS growth (last fiscal year) (0.04%) 0.98% —
Revenue growth, 5-year CAGR 11.47% 7.89% 3.70%
Net income growth, 5-year CAGR 4.04% 7.91% 0.00%

Health

Metric MUSA TSCO Specialty Retail median
Debt to equity 2.79 0.83 0.27
Current ratio 0.92 1.33 1.35
Net debt to EBITDA 2.16 0.82 0.24

Dividend

Metric MUSA TSCO Specialty Retail median
Dividend yield 0.41% 1.90% 1.73%
Payout ratio 0.06 0.39 0.00

Size

Metric MUSA TSCO Specialty Retail median
Market cap 9.47b 16.60b 348.57m

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