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 945% more annual revenue ($21.97B vs $2.10B). BJ leads profitability with a 2.6% profit margin vs 1.7%. BJ trades at a lower P/E of 21.5x. BJ earns a higher WallStSmart Score of 50/100 (C-).

BJ

Buy

50

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 4.0Quality: 5.5
Piotroski: 5/9Altman Z: 3.58

MH

Hold

40

out of 100

Grade: D

Growth: 3.3Profit: 4.5Value: 4.0Quality: 3.5
Piotroski: 6/9Altman Z: 0.28
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BJSignificantly Overvalued (-71.1%)

Margin of Safety

-71.1%

Fair Value

$58.15

Current Price

$99.99

$41.84 premium

UndervaluedFair: $58.15Overvalued

Intrinsic value data unavailable for MH.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BJ2 strengths · Avg: 9.5/10
Altman Z-ScoreHealth
3.5810/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
26.9%9/10

Every $100 of equity generates 27 in profit

MH1 strengths · Avg: 8.0/10
Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

BJ4 concerns · Avg: 3.3/10
PEG RatioValuation
2.254/10

Expensive relative to growth rate

Profit MarginProfitability
2.6%3/10

2.6% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

Debt/EquityHealth
1.353/10

Elevated debt levels

MH4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.83B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
1.7%3/10

1.7% margin — thin

P/E RatioValuation
50.5x2/10

Premium valuation, high expectations priced in

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, Profit Margin, Operating Margin. Thin 2.6% margins leave little buffer for downturns.

Bear Case : MH

The primary concerns for MH are EPS Growth, Market Cap, Profit Margin. A P/E of 50.5x leaves little room for execution misses. Debt-to-equity of 3.64 is elevated, increasing financial risk.

Key Dynamics to Monitor

BJ is growing revenue faster at 9.9% — sustainability is the question.

BJ generates stronger free cash flow (-42M), providing more financial flexibility.

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

Bottom Line

BJ scores higher overall (50/100 vs 40/100). 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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