WallStSmart

BJs Wholesale Club Holdings Inc (BJ)vsDollar General Corporation (DG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 99% more annual revenue ($42.72B vs $21.46B). DG leads profitability with a 3.5% profit margin vs 2.7%. DG appears more attractively valued with a PEG of 1.57. DG earns a higher WallStSmart Score of 63/100 (C+).

BJ

Buy

52

out of 100

Grade: C-

Growth: 4.7Profit: 6.0Value: 7.3Quality: 5.8
Piotroski: 5/9Altman Z: 3.87

DG

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 6.0Value: 10.0Quality: 5.0
Piotroski: 5/9Altman Z: 2.00
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BJSignificantly Overvalued (-83.2%)

Margin of Safety

-83.2%

Fair Value

$54.31

Current Price

$97.04

$42.73 premium

UndervaluedFair: $54.31Overvalued
DGUndervalued (+46.9%)

Margin of Safety

+46.9%

Fair Value

$277.06

Current Price

$124.52

$152.54 discount

UndervaluedFair: $277.06Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BJ2 strengths · Avg: 9.5/10
Altman Z-ScoreHealth
3.8710/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
28.6%9/10

Every $100 of equity generates 29 in profit

DG2 strengths · Avg: 9.0/10
EPS GrowthGrowth
122.0%10/10

Earnings expanding 122.0% YoY

Free Cash FlowQuality
$1.27B8/10

Generating 1.3B in free cash flow

Areas to Watch

BJ4 concerns · Avg: 3.5/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

EPS GrowthGrowth
3.5%4/10

3.5% earnings growth

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Operating MarginProfitability
3.2%3/10

Operating margin of 3.2%

DG3 concerns · Avg: 2.7/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Debt/EquityHealth
2.021/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : BJ

The strongest argument for BJ centers on Altman Z-Score, Return on Equity.

Bull Case : DG

The strongest argument for DG centers on EPS Growth, Free Cash Flow.

Bear Case : BJ

The primary concerns for BJ are PEG Ratio, EPS Growth, Profit Margin. Thin 2.7% margins leave little buffer for downturns.

Bear Case : DG

The primary concerns for DG are PEG Ratio, Profit Margin, Debt/Equity. Debt-to-equity of 2.02 is elevated, increasing financial risk. Thin 3.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

BJ carries more volatility with a beta of 0.33 — expect wider price swings.

DG is growing revenue faster at 5.9% — sustainability is the question.

DG generates stronger free cash flow (1.3B), providing more financial flexibility.

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

Bottom Line

DG scores higher overall (63/100 vs 52/100). 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.

Dollar General Corporation

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Dollar General Corporation is an American chain of variety stores headquartered in Goodlettsville, Tennessee.

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