BJs Wholesale Club (NYSE:BJ) & Tesco (TSCDY) Financial Comparison

BJs Wholesale Club (NYSE:BJ) and Tesco (OTCMKTS:TSCDY) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for BJs Wholesale Club and Tesco, 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
Tesco 0 0 2 0 3.00

BJs Wholesale Club presently has a consensus target price of $30.54, indicating a potential upside of 9.65%. Given BJs Wholesale Club’s higher probable upside, analysts clearly believe BJs Wholesale Club is more favorable than Tesco.

Valuation and Earnings

This table compares BJs Wholesale Club and Tesco’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BJs Wholesale Club $13.01 billion 0.30 $127.26 million $1.14 24.43
Tesco $75.48 billion 0.36 $1.56 billion $0.55 17.96

Tesco has higher revenue and earnings than BJs Wholesale Club. Tesco is trading at a lower price-to-earnings ratio than BJs Wholesale Club, indicating that it is currently the more affordable of the two stocks.

Dividends

Tesco pays an annual dividend of $0.13 per share and has a dividend yield of 1.3%. BJs Wholesale Club does not pay a dividend. Tesco pays out 23.6% of its earnings in the form of a dividend.

Institutional and Insider Ownership

82.4% of BJs Wholesale Club shares are owned by institutional investors. Comparatively, 0.1% of Tesco shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares BJs Wholesale Club and Tesco’s 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
Tesco N/A N/A N/A

Summary

BJs Wholesale Club beats Tesco on 6 of the 11 factors compared between the two stocks.

BJs Wholesale Club Company Profile

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.

Tesco Company Profile

Tesco PLC, together with its subsidiaries, operates as a grocery retailer. The company also provides retail banking and insurance services. It has operations in the United Kingdom, Ireland, the Czech Republic, Hungary, Poland, Slovakia, Malaysia, Thailand, and internationally. The company serves its customers through 6,809 stores, as well as online. Tesco PLC was founded in 1919 and is based in Welwyn Garden City, the United Kingdom.

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