WallStSmart

BJs Wholesale Club Holdings Inc (BJ)vsMcGraw Hill, Inc. (MH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BJs Wholesale Club Holdings Inc generates 916% more annual revenue ($21.46B vs $2.11B). BJ leads profitability with a 2.7% profit margin vs -3.4%. BJ earns a higher WallStSmart Score of 52/100 (C-).

BJ

Buy

52

out of 100

Grade: C-

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

MH

Hold

36

out of 100

Grade: F

Growth: 4.7Profit: 4.0Value: 6.0Quality: 4.8
Piotroski: 7/9Altman Z: 0.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BJUndervalued (+24.9%)

Margin of Safety

+24.9%

Fair Value

$132.45

Current Price

$91.43

$41.02 discount

UndervaluedFair: $132.45Overvalued
MHUndervalued (+28.0%)

Margin of Safety

+28.0%

Fair Value

$17.14

Current Price

$12.00

$5.14 discount

UndervaluedFair: $17.14Overvalued

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

MH1 strengths · Avg: 8.0/10
Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Areas to Watch

BJ4 concerns · Avg: 3.5/10
PEG RatioValuation
2.364/10

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%

MH4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
-11.8%2/10

ROE of -11.8% — below average capital efficiency

Altman Z-ScoreHealth
0.202/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : BJ

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

Bull Case : MH

The strongest argument for MH centers on Price/Book.

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 : MH

The primary concerns for MH are Revenue Growth, EPS Growth, Return on Equity.

Key Dynamics to Monitor

BJ profiles as a value stock while MH is a turnaround play — different risk/reward profiles.

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

MH generates stronger free cash flow (308M), providing more financial flexibility.

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

Bottom Line

BJ scores higher overall (52/100 vs 36/100). MH offers better value entry with a 28.0% 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.

McGraw Hill, Inc.

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

McGraw Hill, Inc., doing business as McGraw Hill, provides information solutions for K-12, higher education, and professional markets in the United States and internationally.

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