BJs Wholesale Club Holdings Inc (BJ)vsDiageo PLC ADR (DEO)
BJ
BJs Wholesale Club Holdings Inc
$89.21
+0.92%
CONSUMER DEFENSIVE · Cap: $11.63B
DEO
Diageo PLC ADR
$80.43
+1.89%
CONSUMER DEFENSIVE · Cap: $44.70B
Smart Verdict
WallStSmart Research — data-driven comparison
BJs Wholesale Club Holdings Inc generates 11% more annual revenue ($21.97B vs $19.80B). DEO leads profitability with a 12.2% profit margin vs 2.6%. DEO appears more attractively valued with a PEG of 0.79. DEO earns a higher WallStSmart Score of 56/100 (C).
BJ
Buy50
out of 100
Grade: C-
DEO
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-71.6%
Fair Value
$58.00
Current Price
$89.21
$31.21 premium
Margin of Safety
+54.3%
Fair Value
$220.42
Current Price
$80.43
$139.99 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Every $100 of equity generates 23 in profit
Every $100 of equity generates 52 in profit
Strong operational efficiency at 31.3%
Growing faster than its price suggests
Generating 1.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
2.6% margin — thin
Operating margin of 3.7%
Elevated debt levels
2.9% earnings growth
Weak financial health signals
Trading at 69.3x book value
Revenue declined 4.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : BJ
The strongest argument for BJ centers on Altman Z-Score, Return on Equity.
Bull Case : DEO
The strongest argument for DEO centers on Return on Equity, Operating Margin, PEG Ratio. PEG of 0.79 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 EPS Growth, Piotroski F-Score, Price/Book. Debt-to-equity of 2.09 is elevated, increasing financial risk.
Key Dynamics to Monitor
BJ profiles as a value stock while DEO is a declining play — different risk/reward profiles.
DEO carries more volatility with a beta of 0.30 — expect wider price swings.
BJ is growing revenue faster at 9.9% — sustainability is the question.
DEO generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
DEO scores higher overall (56/100 vs 50/100). 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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