BJs Wholesale Club Holdings Inc (BJ)vsHormel Foods Corporation (HRL)
BJ
BJs Wholesale Club Holdings Inc
$107.32
+1.81%
CONSUMER DEFENSIVE · Cap: $13.07B
HRL
Hormel Foods Corporation
$21.28
+1.82%
CONSUMER DEFENSIVE · Cap: $11.34B
Smart Verdict
WallStSmart Research — data-driven comparison
BJs Wholesale Club Holdings Inc generates 88% more annual revenue ($22.81B vs $12.15B). HRL leads profitability with a 2.8% profit margin vs 2.6%. HRL appears more attractively valued with a PEG of 1.44. BJ earns a higher WallStSmart Score of 58/100 (C).
BJ
Buy58
out of 100
Grade: C
HRL
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-62.4%
Fair Value
$61.27
Current Price
$107.32
$46.05 premium
Margin of Safety
+46.1%
Fair Value
$44.44
Current Price
$21.28
$23.16 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
Reasonable price relative to book value
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
ROE of 4.4% — below average capital efficiency
2.8% margin — thin
Revenue declined 2.4%
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 : HRL
The strongest argument for HRL centers on Price/Book. PEG of 1.44 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 : HRL
The primary concerns for HRL are P/E Ratio, Return on Equity, Profit Margin. Thin 2.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
BJ profiles as a growth stock while HRL is a value play — different risk/reward profiles.
HRL carries more volatility with a beta of 0.29 — expect wider price swings.
BJ is growing revenue faster at 15.7% — sustainability is the question.
BJ generates stronger free cash flow (224M), providing more financial flexibility.
Bottom Line
BJ scores higher overall (58/100 vs 50/100) and 15.7% revenue growth. HRL offers better value entry with a 46.1% 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.
Hormel Foods Corporation
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
Hormel Foods Corporation is an American company founded in 1891 in Austin, Minnesota, by George A. Hormel as George A. Hormel & Company. Originally focusing on the packaging and selling of ham, Spam, sausage and other pork, chicken, beef and lamb products to consumers; by the 1980s, Hormel began offering a wider range of packaged and refrigerated foods.
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