BJs Wholesale Club Holdings Inc (BJ)vsDiageo PLC ADR (DEO)
BJ
BJs Wholesale Club Holdings Inc
$103.44
-1.60%
CONSUMER DEFENSIVE · Cap: $11.99B
DEO
Diageo PLC ADR
$91.96
-1.19%
CONSUMER DEFENSIVE · Cap: $53.37B
Smart Verdict
WallStSmart Research — data-driven comparison
BJs Wholesale Club Holdings Inc generates 16% more annual revenue ($22.81B vs $19.64B). DEO leads profitability with a 8.8% profit margin vs 2.6%. DEO appears more attractively valued with a PEG of 0.54. BJ earns a higher WallStSmart Score of 58/100 (C).
BJ
Buy58
out of 100
Grade: C
DEO
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-62.4%
Fair Value
$61.27
Current Price
$103.44
$42.17 premium
Margin of Safety
+52.2%
Fair Value
$210.77
Current Price
$91.96
$118.81 discount
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
Every $100 of equity generates 38 in profit
Large-cap with strong market position
Growing faster than its price suggests
Strong operational efficiency at 27.0%
Generating 1.7B in free cash flow
Areas to Watch
Expensive relative to growth rate
2.6% margin — thin
Operating margin of 4.0%
Elevated debt levels
Premium valuation, high expectations priced in
2.9% earnings growth
Distress zone — elevated risk
Weak financial health signals
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 : DEO
The strongest argument for DEO centers on Return on Equity, Market Cap, PEG Ratio. PEG of 0.54 suggests the stock is reasonably priced for its growth.
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 : DEO
The primary concerns for DEO are P/E Ratio, EPS Growth, Altman Z-Score. Debt-to-equity of 2.04 is elevated, increasing financial risk.
Key Dynamics to Monitor
BJ profiles as a growth stock while DEO is a value play — different risk/reward profiles.
DEO carries more volatility with a beta of 0.35 — expect wider price swings.
BJ is growing revenue faster at 15.7% — sustainability is the question.
DEO generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
BJ scores higher overall (58/100 vs 52/100) and 15.7% revenue growth. DEO offers better value entry with a 52.2% margin of safety. 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.
Diageo PLC ADR
CONSUMER DEFENSIVE · BEVERAGES - WINERIES & DISTILLERIES · USA
Diageo plc produces, markets and sells alcoholic beverages. The company is headquartered in London, the United Kingdom.
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