BBB Foods Inc. (TBBB) vs Walmart Inc. (WMT)

BBB Foods Inc. and Walmart Inc. are both Discount Stores companies. Walmart Inc. is the larger, with a market value of $852.5B against $5.8B — 147.7× the size. BBB Foods Inc. has negative trailing earnings, so its P/E is not meaningful; Walmart Inc. trades at 39.0×. BBB Foods Inc. grew revenue faster over the last twelve months: 48.3% against 6.16%. Walmart Inc. has the higher net margin (3.00% vs −3.61%) and the higher return on invested capital (13.5% vs −3.83%). Across the 19 metrics below, Walmart Inc. leads on 15 and BBB Foods Inc. on 4.

Valuation

Metric TBBB WMT Discount Stores median
P/E n/m 38.98 19.55
P/S 1.25 1.17 1.08
P/B 18.42 8.22 5.43
Price to free cash flow 34.94 62.70 33.31
EV/EBITDA 1,115.12 19.08 12.17
EV/Sales 1.35 1.23 1.06
Earnings yield (3.01%) 2.57% 3.95%
Free cash flow yield 2.86% 1.59% 2.93%

Profitability

Metric TBBB WMT Discount Stores median
Gross margin 16.37% 25.23% 27.27%
Operating margin (1.00%) 4.39% 4.45%
Net margin (3.61%) 3.00% 3.01%
Free cash flow margin 3.59% 1.86% 3.30%
Return on equity (65.81%) 21.96% 20.83%
Return on assets (10.76%) 7.82% 7.60%
Return on invested capital (3.83%) 13.51% 13.21%

Growth

Metric TBBB WMT Discount Stores median
Revenue growth (TTM) 48.34% 6.16% 8.64%
EPS growth (last fiscal year) (1,092.31%) 13.28% —
Revenue growth, 5-year CAGR — 4.99% 4.99%
Net income growth, 5-year CAGR — 10.14% 0.00%

Health

Metric TBBB WMT Discount Stores median
Debt to equity 2.42 0.54 0.39
Current ratio 0.68 0.77 1.03
Net debt to EBITDA 44.29 0.91 0.59

Dividend

Metric TBBB WMT Discount Stores median
Dividend yield — 1.35% 2.12%
Payout ratio — 0.43 0.24

Size

Metric TBBB WMT Discount Stores median
Market cap 5.77b 852.48b 16.44b

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