PSMT (PriceSmart Inc) vs S&P 500 Comparison

PSMT

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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PSMT

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

PSMT

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

PSMT

WMT

COST

WALMEX

8267

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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PriceSmart Inc
Glance View

Market Cap

2.8B USD

Industry

Retail

PriceSmart Inc. is a unique player in the retail landscape, weaving its narrative through a business model reminiscent of the famed American warehouse club style retailing, but with a specialized focus on Latin America and the Caribbean. Founded in 1993 by Robert Price, PriceSmart has developed a distinct identity, capitalizing on the expanding middle-class population in these regions, and catering to their growing appetite for bulk shopping. The company's strategy revolves around its membership-only model, which not only provides a steady stream of revenue but also fosters customer loyalty. By requiring an annual membership fee, PriceSmart creates a sense of exclusivity and a commitment to value-seeking customers who benefit from cost savings on a wide array of products, from groceries to electronics. The company's operational prowess lies in its efficient supply chain management and strategic selection of sites that tap into underpenetrated markets. PriceSmart tends to emphasize private-label products, allowing them to maintain control over pricing and margins. It marries this approach with an inventory strategy centered around limited stock-keeping units, driving purchasing value through large-scale ordering and supplier negotiations. The result is a compelling value proposition that appeals to consumers seeking quality and affordability. By continually reinvesting in its infrastructure and member experience, PriceSmart has carved out a profitable niche, illustrating how regional focus and operational efficiency can lead to success outside the traditional realms dominated by retail giants.

View PSMT Analysis

PSMT Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

US		Walmart Inc NYSE:WMT	Add
US		Costco Wholesale Corp NASDAQ:COST	Add
MX		Wal Mart de Mexico SAB de CV BMV:WALMEX	Add
JP		Aeon Co Ltd TSE:8267	Add
AU		Coles Group Ltd ASX:COL	Add
US		BJ's Wholesale Club Holdings Inc NYSE:BJ	Add
TH	S	Siam Makro PCL SET:MAKRO	Add
FR		Carrefour SA PAR:CA	Add
SA		Abdullah Al Othaim Markets CompanySJSC SAU:4001	Add
TH	B	Berli Jucker PCL SET:BJC	Add

US		Walmart Inc NYSE:WMT	Select
US		Costco Wholesale Corp NASDAQ:COST	Select
MX		Wal Mart de Mexico SAB de CV BMV:WALMEX	Select
JP		Aeon Co Ltd TSE:8267	Select
AU		Coles Group Ltd ASX:COL	Select
US		BJ's Wholesale Club Holdings Inc NYSE:BJ	Select
TH	S	Siam Makro PCL SET:MAKRO	Select
FR		Carrefour SA PAR:CA	Select
SA		Abdullah Al Othaim Markets CompanySJSC SAU:4001	Select
TH	B	Berli Jucker PCL SET:BJC	Select

US		Walmart Inc NYSE:WMT	Add
US		Costco Wholesale Corp NASDAQ:COST	Add
MX		Wal Mart de Mexico SAB de CV BMV:WALMEX	Add
JP		Aeon Co Ltd TSE:8267	Add
AU		Coles Group Ltd ASX:COL	Add
US		BJ's Wholesale Club Holdings Inc NYSE:BJ	Add
TH	S	Siam Makro PCL SET:MAKRO	Add
FR		Carrefour SA PAR:CA	Add
SA		Abdullah Al Othaim Markets CompanySJSC SAU:4001	Add
TH	B	Berli Jucker PCL SET:BJC	Add

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PSMT

vs

S&P 500

Stocks Performance
PSMT vs S&P 500

Performance Gap
PSMT vs S&P 500

Performance By Year
PSMT vs S&P 500

Competitors Performance
PriceSmart Inc vs Peers

PriceSmart Inc
Glance View

Company

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PSMT vs S&P 500

Stocks Performance PSMT vs S&P 500

Performance Gap PSMT vs S&P 500

Performance By Year PSMT vs S&P 500

Competitors Performance PriceSmart Inc vs Peers

PriceSmart Inc Glance View

Company

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Stocks

PSMT

vs

S&P 500

Stocks Performance
PSMT vs S&P 500

Performance Gap
PSMT vs S&P 500

Performance By Year
PSMT vs S&P 500

Competitors Performance
PriceSmart Inc vs Peers

PriceSmart Inc
Glance View