PriceSmart, Inc. (PSMT) vs Walmart Inc. (WMT)

PriceSmart, Inc. and Walmart Inc. are both Discount Stores companies. Walmart Inc. is the larger, with a market value of $852.5B against $5.3B — 159.6× the size. PriceSmart, Inc. trades at the lower P/E: 33.5× against 39.0×. PriceSmart, Inc. grew revenue faster over the last twelve months: 10.2% against 6.16%. Walmart Inc. has the higher net margin (3.00% vs 2.77%) and the higher return on invested capital (13.5% vs 12.9%). Both pay a dividend; Walmart Inc. yields more (1.35% vs 1.26%). Across the 23 metrics below, PriceSmart, Inc. leads on 13 and Walmart Inc. on 10.

Valuation

Metric PSMT WMT Discount Stores median
P/E 33.54 38.98 19.55
P/S 0.93 1.17 1.08
P/B 3.79 8.22 5.43
Price to free cash flow 64.15 62.70 33.31
EV/EBITDA 14.56 19.08 12.17
EV/Sales 0.90 1.23 1.06
Earnings yield 2.98% 2.57% 3.95%
Free cash flow yield 1.56% 1.59% 2.93%

Profitability

Metric PSMT WMT Discount Stores median
Gross margin 17.63% 25.23% 27.27%
Operating margin 4.51% 4.39% 4.45%
Net margin 2.77% 3.00% 3.01%
Free cash flow margin 1.45% 1.86% 3.30%
Return on equity 12.08% 21.96% 20.83%
Return on assets 6.75% 7.82% 7.60%
Return on invested capital 12.91% 13.51% 13.21%

Growth

Metric PSMT WMT Discount Stores median
Revenue growth (TTM) 10.18% 6.16% 8.64%
EPS growth (last fiscal year) 5.47% 13.28% —
Revenue growth, 5-year CAGR 9.62% 4.99% 4.99%
Net income growth, 5-year CAGR 13.15% 10.14% 0.00%

Health

Metric PSMT WMT Discount Stores median
Debt to equity 0.13 0.54 0.39
Current ratio 1.28 0.77 1.03
Net debt to EBITDA (0.39) 0.91 0.59

Dividend

Metric PSMT WMT Discount Stores median
Dividend yield 1.26% 1.35% 2.12%
Payout ratio 0.24 0.43 0.24

Size

Metric PSMT WMT Discount Stores median
Market cap 5.34b 852.48b 16.44b

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