WallStSmart

BJs Wholesale Club Holdings Inc (BJ)vsDarling Ingredients Inc (DAR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BJs Wholesale Club Holdings Inc generates 240% more annual revenue ($21.46B vs $6.31B). DAR leads profitability with a 3.5% profit margin vs 2.7%. BJ appears more attractively valued with a PEG of 2.39. 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

DAR

Hold

45

out of 100

Grade: D

Growth: 3.3Profit: 4.5Value: 4.7Quality: 4.8
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BJUndervalued (+24.9%)

Margin of Safety

+24.9%

Fair Value

$132.52

Current Price

$94.28

$38.24 discount

UndervaluedFair: $132.52Overvalued
DARUndervalued (+26.7%)

Margin of Safety

+26.7%

Fair Value

$67.72

Current Price

$64.38

$3.34 discount

UndervaluedFair: $67.72Overvalued

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

DAR1 strengths · Avg: 8.0/10
Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Areas to Watch

BJ4 concerns · Avg: 3.5/10
PEG RatioValuation
2.394/10

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%

DAR4 concerns · Avg: 2.8/10
Return on EquityProfitability
1.5%3/10

ROE of 1.5% — below average capital efficiency

Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.312/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : BJ

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

Bull Case : DAR

The strongest argument for DAR centers on Price/Book. Revenue growth of 12.3% demonstrates continued momentum.

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 : DAR

The primary concerns for DAR are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 46.2x leaves little room for execution misses. Thin 3.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

DAR carries more volatility with a beta of 1.08 — expect wider price swings.

DAR is growing revenue faster at 12.3% — sustainability is the question.

DAR generates stronger free cash flow (284M), providing more financial flexibility.

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

Bottom Line

BJ scores higher overall (52/100 vs 45/100). DAR offers better value entry with a 26.7% 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.

Darling Ingredients Inc

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Darling Ingredients Inc. develops, produces and sells natural ingredients from edible and non-edible bio-nutrients. The company is headquartered in Irving, Texas.

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