WallStSmart

BJs Wholesale Club Holdings Inc (BJ)vsKroger Company (KR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Kroger Company generates 588% more annual revenue ($147.64B vs $21.46B). BJ leads profitability with a 2.7% profit margin vs 0.7%. KR appears more attractively valued with a PEG of 1.73. KR earns a higher WallStSmart Score of 55/100 (C).

BJ

Buy

52

out of 100

Grade: C-

Growth: 4.7Profit: 6.0Value: 4.0Quality: 5.8
Piotroski: 5/9Altman Z: 3.87

KR

Buy

55

out of 100

Grade: C

Growth: 5.3Profit: 5.0Value: 4.7Quality: 5.3
Piotroski: 3/9Altman Z: 3.79
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BJSignificantly Overvalued (-83.2%)

Margin of Safety

-83.2%

Fair Value

$54.31

Current Price

$99.61

$45.30 premium

UndervaluedFair: $54.31Overvalued
KRUndervalued (+4.7%)

Margin of Safety

+4.7%

Fair Value

$72.07

Current Price

$73.22

$1.15 discount

UndervaluedFair: $72.07Overvalued

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

KR3 strengths · Avg: 9.3/10
EPS GrowthGrowth
50.1%10/10

Earnings expanding 50.1% YoY

Altman Z-ScoreHealth
3.7910/10

Safe zone — low bankruptcy risk

Free Cash FlowQuality
$1.80B8/10

Generating 1.8B in free cash flow

Areas to Watch

BJ4 concerns · Avg: 3.5/10
PEG RatioValuation
2.454/10

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%

KR4 concerns · Avg: 3.5/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

Revenue GrowthGrowth
1.2%4/10

1.2% revenue growth

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Operating MarginProfitability
3.5%3/10

Operating margin of 3.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : BJ

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

Bull Case : KR

The strongest argument for KR centers on EPS Growth, Altman Z-Score, 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 : KR

The primary concerns for KR are PEG Ratio, Revenue Growth, Profit Margin. A P/E of 47.5x leaves little room for execution misses. Thin 0.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

KR carries more volatility with a beta of 0.59 — expect wider price swings.

BJ is growing revenue faster at 5.6% — sustainability is the question.

KR generates stronger free cash flow (1.8B), providing more financial flexibility.

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

Bottom Line

KR scores higher overall (55/100 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.

Kroger Company

CONSUMER DEFENSIVE · GROCERY STORES · USA

The Kroger Company, or simply Kroger, is an American retail company founded by Bernard Kroger in 1883 in Cincinnati, Ohio.

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