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 14% more annual revenue ($22.81B vs $20.09B). KDP leads profitability with a 7.1% profit margin vs 2.6%. KDP appears more attractively valued with a PEG of 0.98. KDP earns a higher WallStSmart Score of 63/100 (C+).

BJ

Buy

58

out of 100

Grade: C

Growth: 6.7Profit: 6.0Value: 4.0Quality: 5.5
Piotroski: 5/9Altman Z: 3.58

KDP

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 5.0Value: 7.3Quality: 4.0
Piotroski: 5/9Altman Z: 1.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BJSignificantly Overvalued (-62.4%)

Margin of Safety

-62.4%

Fair Value

$61.27

Current Price

$103.44

$42.17 premium

UndervaluedFair: $61.27Overvalued
KDPUndervalued (+62.8%)

Margin of Safety

+62.8%

Fair Value

$80.29

Current Price

$34.93

$45.36 discount

UndervaluedFair: $80.29Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BJ3 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
3.5810/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
27.1%9/10

Every $100 of equity generates 27 in profit

Revenue GrowthGrowth
15.7%8/10

15.7% revenue growth

KDP3 strengths · Avg: 8.7/10
Revenue GrowthGrowth
75.6%10/10

Revenue surging 75.6% year-over-year

PEG RatioValuation
0.988/10

Growing faster than its price suggests

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

BJ4 concerns · Avg: 3.3/10
PEG RatioValuation
2.084/10

Expensive relative to growth rate

Profit MarginProfitability
2.6%3/10

2.6% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

Debt/EquityHealth
1.263/10

Elevated debt levels

KDP4 concerns · Avg: 3.3/10
P/E RatioValuation
35.0x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
5.7%3/10

ROE of 5.7% — below average capital efficiency

Profit MarginProfitability
7.1%3/10

7.1% margin — thin

Debt/EquityHealth
1.373/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : BJ

The strongest argument for BJ centers on Altman Z-Score, Return on Equity, Revenue Growth. Revenue growth of 15.7% demonstrates continued momentum.

Bull Case : KDP

The strongest argument for KDP centers on Revenue Growth, PEG Ratio, Price/Book. Revenue growth of 75.6% demonstrates continued momentum. PEG of 0.98 suggests the stock is reasonably priced for its growth.

Bear Case : BJ

The primary concerns for BJ are PEG Ratio, Profit Margin, Operating Margin. Thin 2.6% margins leave little buffer for downturns.

Bear Case : KDP

The primary concerns for KDP are P/E Ratio, Return on Equity, Profit Margin.

Key Dynamics to Monitor

BJ profiles as a growth stock while KDP is a hypergrowth play — different risk/reward profiles.

KDP carries more volatility with a beta of 0.41 — expect wider price swings.

KDP is growing revenue faster at 75.6% — sustainability is the question.

KDP generates stronger free cash flow (714M), providing more financial flexibility.

Bottom Line

KDP scores higher overall (63/100 vs 58/100) and 75.6% revenue growth. Both earn "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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