WallStSmart

BJs Wholesale Club Holdings Inc (BJ)vsHonest Company Inc (HNST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BJs Wholesale Club Holdings Inc generates 5679% more annual revenue ($21.46B vs $371.32M). BJ leads profitability with a 2.7% profit margin vs -4.2%. 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

HNST

Hold

37

out of 100

Grade: F

Growth: 6.0Profit: 3.0Value: 6.7Quality: 6.5
Piotroski: 2/9Altman Z: 0.77
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
HNSTUndervalued (+58.2%)

Margin of Safety

+58.2%

Fair Value

$5.12

Current Price

$3.50

$1.62 discount

UndervaluedFair: $5.12Overvalued

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

HNST3 strengths · Avg: 9.3/10
EPS GrowthGrowth
329.7%10/10

Earnings expanding 329.7% YoY

Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

Price/BookValuation
2.3x8/10

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%

HNST4 concerns · Avg: 2.8/10
Market CapQuality
$391.41M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
1.3%3/10

Operating margin of 1.3%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-9.1%2/10

ROE of -9.1% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : BJ

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

Bull Case : HNST

The strongest argument for HNST centers on EPS Growth, Debt/Equity, 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 : HNST

The primary concerns for HNST are Market Cap, Operating Margin, Piotroski F-Score.

Key Dynamics to Monitor

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

HNST carries more volatility with a beta of 2.16 — expect wider price swings.

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

BJ generates stronger free cash flow (193M), providing more financial flexibility.

Bottom Line

BJ scores higher overall (52/100 vs 37/100). HNST offers better value entry with a 58.2% 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.

Honest Company Inc

CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA

The Honest Company, Inc. manufactures and sells baby, beauty and personal care products. The company is headquartered in Los Angeles, California.

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