BJs Wholesale Club Holdings Inc (BJ)vsCostco Wholesale Corp (COST)
BJ
BJs Wholesale Club Holdings Inc
$107.32
+1.81%
CONSUMER DEFENSIVE · Cap: $13.07B
COST
Costco Wholesale Corp
$1,012.28
+1.77%
CONSUMER DEFENSIVE · Cap: $448.57B
Smart Verdict
WallStSmart Research — data-driven comparison
Costco Wholesale Corp generates 1229% more annual revenue ($303.15B vs $22.81B). COST leads profitability with a 3.0% profit margin vs 2.6%. BJ appears more attractively valued with a PEG of 2.29. BJ earns a higher WallStSmart Score of 58/100 (C).
BJ
Buy58
out of 100
Grade: C
COST
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-62.4%
Fair Value
$61.27
Current Price
$107.32
$46.05 premium
Intrinsic value data unavailable for COST.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Every $100 of equity generates 27 in profit
15.7% revenue growth
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Every $100 of equity generates 26 in profit
Conservative balance sheet, low leverage
Generating 2.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
2.6% margin — thin
Operating margin of 4.0%
Elevated debt levels
Trading at 12.5x book value
3.0% margin — thin
Operating margin of 3.8%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : BJ
The strongest argument for BJ centers on Altman Z-Score, Return on Equity, Revenue Growth. Revenue growth of 15.7% demonstrates continued momentum.
Bull Case : COST
The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity. Revenue growth of 11.1% demonstrates continued momentum.
Bear Case : BJ
The primary concerns for BJ are PEG Ratio, Profit Margin, Operating Margin. Thin 2.6% margins leave little buffer for downturns.
Bear Case : COST
The primary concerns for COST are Price/Book, Profit Margin, Operating Margin. A P/E of 48.8x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
BJ profiles as a growth stock while COST is a value play — different risk/reward profiles.
COST carries more volatility with a beta of 0.87 — expect wider price swings.
BJ is growing revenue faster at 15.7% — sustainability is the question.
COST generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
BJ scores higher overall (58/100 vs 55/100) and 15.7% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
BJs Wholesale Club Holdings Inc
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
BJ's Wholesale Club Holdings, Inc., operates warehouse clubs on the East Coast of the United States. The company is headquartered in Westborough, Massachusetts.
Costco Wholesale Corp
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Costco Wholesale Corporation (doing business as Costco Wholesale and also known simply as Costco) is an American multinational corporation which operates a chain of membership-only (needing a membership to shop there) big-box retail stores. As of 2020, Costco was the fifth largest retailer in the world, and the world's largest retailer of choice and prime beef, organic foods, rotisserie chicken, and wine as of 2016.
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