WallStSmart

BJs Wholesale Club Holdings Inc (BJ)vsKeurig Dr Pepper Inc (KDP)

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Smart Verdict

WallStSmart Research — data-driven comparison

BJs Wholesale Club Holdings Inc generates 29% more annual revenue ($21.46B vs $16.60B). KDP leads profitability with a 12.5% profit margin vs 2.7%. KDP appears more attractively valued with a PEG of 0.89. KDP earns a higher WallStSmart Score of 69/100 (B-).

BJ

Buy

52

out of 100

Grade: C-

Growth: 4.7Profit: 6.0Value: 4.0Quality: 5.8
Piotroski: 5/9Altman Z: 3.87

KDP

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 6.5Value: 7.3Quality: 4.3
Piotroski: 5/9Altman Z: 1.06
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BJSignificantly Overvalued (-83.2%)

Margin of Safety

-83.2%

Fair Value

$54.31

Current Price

$99.61

$45.30 premium

UndervaluedFair: $54.31Overvalued
KDPUndervalued (+2.7%)

Margin of Safety

+2.7%

Fair Value

$30.72

Current Price

$26.23

$4.49 discount

UndervaluedFair: $30.72Overvalued

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

KDP4 strengths · Avg: 8.5/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

PEG RatioValuation
0.898/10

Growing faster than its price suggests

P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Operating MarginProfitability
22.6%8/10

Strong operational efficiency at 22.6%

Areas to Watch

BJ4 concerns · Avg: 3.5/10
PEG RatioValuation
2.454/10

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%

KDP1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
1.062/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : BJ

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

Bull Case : KDP

The strongest argument for KDP centers on Price/Book, PEG Ratio, P/E Ratio. Revenue growth of 10.5% demonstrates continued momentum. PEG of 0.89 suggests the stock is reasonably priced for its growth.

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 : KDP

The primary concerns for KDP are Altman Z-Score.

Key Dynamics to Monitor

BJ carries more volatility with a beta of 0.33 — expect wider price swings.

KDP is growing revenue faster at 10.5% — sustainability is the question.

KDP generates stronger free cash flow (566M), providing more financial flexibility.

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

Bottom Line

KDP scores higher overall (69/100 vs 52/100) and 10.5% revenue growth. Both earn "Strong Buy" and "Buy" 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.

Keurig Dr Pepper Inc

CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA

Keurig Dr Pepper Inc. is a beverage company in the United States and internationally. The company is headquartered in Burlington, Massachusetts.

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