WallStSmart

BJs Wholesale Club Holdings Inc (BJ)vsDarling Ingredients Inc (DAR)

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Smart Verdict

WallStSmart Research — data-driven comparison

BJs Wholesale Club Holdings Inc generates 248% more annual revenue ($22.81B vs $6.55B). DAR leads profitability with a 9.1% profit margin vs 2.6%. BJ appears more attractively valued with a PEG of 2.29. DAR earns a higher WallStSmart Score of 64/100 (C+).

BJ

Buy

58

out of 100

Grade: C

Growth: 6.7Profit: 6.0Value: 4.0Quality: 5.5
Piotroski: 5/9Altman Z: 3.58

DAR

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 5.5Value: 6.0Quality: 6.0
Piotroski: 5/9Altman Z: 1.83
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BJSignificantly Overvalued (-62.4%)

Margin of Safety

-62.4%

Fair Value

$61.27

Current Price

$107.32

$46.05 premium

UndervaluedFair: $61.27Overvalued
DARUndervalued (+18.1%)

Margin of Safety

+18.1%

Fair Value

$60.56

Current Price

$55.73

$4.83 discount

UndervaluedFair: $60.56Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BJ3 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
3.5810/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
27.1%9/10

Every $100 of equity generates 27 in profit

Revenue GrowthGrowth
15.7%8/10

15.7% revenue growth

DAR4 strengths · Avg: 8.5/10
EPS GrowthGrowth
2914.0%10/10

Earnings expanding 2914.0% YoY

P/E RatioValuation
14.9x8/10

Attractively priced relative to earnings

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.4%8/10

16.4% revenue growth

Areas to Watch

BJ4 concerns · Avg: 3.3/10
PEG RatioValuation
2.294/10

Expensive relative to growth rate

Profit MarginProfitability
2.6%3/10

2.6% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

Debt/EquityHealth
1.263/10

Elevated debt levels

DAR3 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.834/10

Grey zone — moderate risk

Return on EquityProfitability
4.6%3/10

ROE of 4.6% — below average capital efficiency

PEG RatioValuation
4.312/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull 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 : DAR

The strongest argument for DAR centers on EPS Growth, P/E Ratio, Price/Book. Revenue growth of 16.4% 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 : DAR

The primary concerns for DAR are Altman Z-Score, Return on Equity, PEG Ratio.

Key Dynamics to Monitor

DAR carries more volatility with a beta of 1.05 — expect wider price swings.

DAR is growing revenue faster at 16.4% — sustainability is the question.

DAR generates stronger free cash flow (405M), providing more financial flexibility.

Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DAR scores higher overall (64/100 vs 58/100) and 16.4% 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.

Darling Ingredients Inc

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Darling Ingredients Inc. develops, produces and sells natural ingredients from edible and non-edible bio-nutrients. The company is headquartered in Irving, Texas.

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