Reviewing BJs Wholesale Club (NYSE:BJ) and Its Competitors

BJs Wholesale Club (NYSE: BJ) is one of 14 public companies in the “Variety stores” industry, but how does it contrast to its peers? We will compare BJs Wholesale Club to related companies based on the strength of its profitability, dividends, analyst recommendations, valuation, institutional ownership, risk and earnings.

Insider and Institutional Ownership

82.4% of BJs Wholesale Club shares are owned by institutional investors. Comparatively, 77.1% of shares of all “Variety stores” companies are owned by institutional investors. 13.8% of shares of all “Variety stores” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for BJs Wholesale Club and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BJs Wholesale Club 1 6 11 0 2.56
BJs Wholesale Club Competitors 260 1648 2106 115 2.50

BJs Wholesale Club presently has a consensus target price of $30.54, suggesting a potential upside of 7.00%. As a group, “Variety stores” companies have a potential upside of 1.09%. Given BJs Wholesale Club’s stronger consensus rating and higher possible upside, analysts plainly believe BJs Wholesale Club is more favorable than its peers.

Profitability

This table compares BJs Wholesale Club and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BJs Wholesale Club N/A N/A N/A
BJs Wholesale Club Competitors 2.24% 10.74% 6.02%

Valuation and Earnings

This table compares BJs Wholesale Club and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
BJs Wholesale Club $13.01 billion $127.26 million 25.04
BJs Wholesale Club Competitors $65.18 billion $1.21 billion 25.39

BJs Wholesale Club’s peers have higher revenue and earnings than BJs Wholesale Club. BJs Wholesale Club is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

BJs Wholesale Club peers beat BJs Wholesale Club on 8 of the 12 factors compared.

About BJs Wholesale Club

BJ's Wholesale Club Holdings, Inc. operates as a warehouse club on the East Coast of the United States. It offers perishable, edible grocery, general merchandise, and non-edible grocery products. The company also sells electronics, computers, office supplies and equipment, home products, health and beauty aids, sporting goods, outdoor living, baby products, toys, and jewelry through Website. As of February 2, 2019, it operated 216 clubs and 138 gasoline stations. The company was formerly known as Beacon Holding Inc. and changed its name to BJ's Wholesale Club Holdings, Inc. in February 2018. The company is based in Westborough, Massachusetts.

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