BJs Wholesale Club Holdings Inc (BJ)vsLamb Weston Holdings Inc (LW)
BJ
BJs Wholesale Club Holdings Inc
$91.49
+2.05%
CONSUMER DEFENSIVE · Cap: $11.35B
LW
Lamb Weston Holdings Inc
$47.85
+1.12%
CONSUMER DEFENSIVE · Cap: $6.79B
Smart Verdict
WallStSmart Research — data-driven comparison
BJs Wholesale Club Holdings Inc generates 245% more annual revenue ($22.81B vs $6.61B). LW leads profitability with a 4.4% profit margin vs 2.6%. LW appears more attractively valued with a PEG of 0.82. BJ earns a higher WallStSmart Score of 58/100 (C).
BJ
Buy58
out of 100
Grade: C
LW
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-62.6%
Fair Value
$61.20
Current Price
$91.49
$30.29 premium
Margin of Safety
+27.6%
Fair Value
$69.34
Current Price
$47.85
$21.49 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Every $100 of equity generates 23 in profit
15.7% revenue growth
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
2.6% margin — thin
Operating margin of 4.0%
Elevated debt levels
4.4% margin — thin
Earnings declined 6.2%
Elevated debt levels
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 : LW
The strongest argument for LW centers on PEG Ratio. PEG of 0.82 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 : LW
The primary concerns for LW are Profit Margin, EPS Growth, Debt/Equity. Debt-to-equity of 2.16 is elevated, increasing financial risk. Thin 4.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
BJ profiles as a growth stock while LW is a value play — different risk/reward profiles.
LW carries more volatility with a beta of 0.46 — 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 53/100) and 15.7% revenue growth. LW offers better value entry with a 27.6% margin of safety. 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.
Lamb Weston Holdings Inc
CONSUMER DEFENSIVE · PACKAGED FOODS · USA
Lamb Weston Holdings, Inc. is an American food processing company that is one of the world's largest producers and processors of frozen french fries and other frozen potato products. It is headquartered in Eagle, Idaho.
Visit Website →Compare with Other DISCOUNT STORES Stocks
Want to dig deeper into these stocks?