BJs Wholesale Club Holdings Inc (BJ)vsLamb Weston Holdings Inc (LW)
BJ
BJs Wholesale Club Holdings Inc
$91.43
-0.82%
CONSUMER DEFENSIVE · Cap: $11.86B
LW
Lamb Weston Holdings Inc
$43.03
-0.12%
CONSUMER DEFENSIVE · Cap: $5.94B
Smart Verdict
WallStSmart Research — data-driven comparison
BJs Wholesale Club Holdings Inc generates 229% more annual revenue ($21.46B vs $6.52B). LW leads profitability with a 4.6% profit margin vs 2.7%. LW appears more attractively valued with a PEG of 0.97. LW earns a higher WallStSmart Score of 55/100 (C).
BJ
Buy52
out of 100
Grade: C-
LW
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+24.9%
Fair Value
$132.45
Current Price
$91.43
$41.02 discount
Margin of Safety
+45.9%
Fair Value
$92.92
Current Price
$43.03
$49.89 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Every $100 of equity generates 29 in profit
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
3.5% earnings growth
2.7% margin — thin
Operating margin of 3.2%
2.9% revenue growth
Grey zone — moderate risk
4.6% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : BJ
The strongest argument for BJ centers on Altman Z-Score, Return on Equity.
Bull Case : LW
The strongest argument for LW centers on PEG Ratio. PEG of 0.97 suggests the stock is reasonably priced for its growth.
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 : LW
The primary concerns for LW are Revenue Growth, Altman Z-Score, Profit Margin. Debt-to-equity of 2.25 is elevated, increasing financial risk. Thin 4.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
LW carries more volatility with a beta of 0.48 — expect wider price swings.
BJ is growing revenue faster at 5.6% — sustainability is the question.
BJ generates stronger free cash flow (193M), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LW scores higher overall (55/100 vs 52/100). BJ offers better value entry with a 24.9% 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.
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