WallStSmart

BJs Wholesale Club Holdings Inc (BJ)vsEstee Lauder Companies Inc (EL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BJs Wholesale Club Holdings Inc generates 52% more annual revenue ($22.81B vs $15.05B). BJ leads profitability with a 2.6% profit margin vs 1.2%. EL appears more attractively valued with a PEG of 2.12. BJ earns a higher WallStSmart Score of 58/100 (C).

BJ

Buy

58

out of 100

Grade: C

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

EL

Hold

37

out of 100

Grade: F

Growth: 3.3Profit: 5.0Value: 4.7Quality: 4.3
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BJSignificantly Overvalued (-62.6%)

Margin of Safety

-62.6%

Fair Value

$61.20

Current Price

$91.49

$30.29 premium

UndervaluedFair: $61.20Overvalued
ELUndervalued (+29.8%)

Margin of Safety

+29.8%

Fair Value

$150.16

Current Price

$97.12

$53.04 discount

UndervaluedFair: $150.16Overvalued

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
22.9%9/10

Every $100 of equity generates 23 in profit

Revenue GrowthGrowth
15.7%8/10

15.7% revenue growth

EL0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

BJ4 concerns · Avg: 3.3/10
PEG RatioValuation
2.194/10

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

EL4 concerns · Avg: 3.5/10
PEG RatioValuation
2.124/10

Expensive relative to growth rate

Price/BookValuation
9.2x4/10

Trading at 9.2x book value

Return on EquityProfitability
4.8%3/10

ROE of 4.8% — below average capital efficiency

Profit MarginProfitability
1.2%3/10

1.2% margin — thin

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 : EL

EL has a balanced fundamental profile.

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 : EL

The primary concerns for EL are PEG Ratio, Price/Book, Return on Equity. A P/E of 203.4x leaves little room for execution misses. Debt-to-equity of 2.43 is elevated, increasing financial risk.

Key Dynamics to Monitor

BJ profiles as a growth stock while EL is a value play — different risk/reward profiles.

EL carries more volatility with a beta of 1.27 — expect wider price swings.

BJ is growing revenue faster at 15.7% — sustainability is the question.

EL generates stronger free cash flow (425M), providing more financial flexibility.

Bottom Line

BJ scores higher overall (58/100 vs 37/100) and 15.7% revenue growth. EL offers better value entry with a 29.8% margin of safety. Both earn "Buy" and "Hold" 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.

Estee Lauder Companies Inc

CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA

The Estee Lauder Companies Inc. is an American multinational manufacturer and marketer of prestige skincare, makeup, fragrance and hair care products, based in Midtown Manhattan, New York City. The company owns a diverse portfolio of brands, distributed internationally through both digital commerce and retail channels.

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