BJs Wholesale Club Holdings Inc (BJ)vsKroger Company (KR)
BJ
BJs Wholesale Club Holdings Inc
$103.44
-1.60%
CONSUMER DEFENSIVE · Cap: $11.99B
KR
Kroger Company
$65.02
-1.29%
CONSUMER DEFENSIVE · Cap: $37.04B
Smart Verdict
WallStSmart Research — data-driven comparison
Kroger Company generates 555% more annual revenue ($149.33B vs $22.81B). BJ leads profitability with a 2.6% profit margin vs 0.7%. KR appears more attractively valued with a PEG of 0.57. BJ earns a higher WallStSmart Score of 58/100 (C).
BJ
Buy58
out of 100
Grade: C
KR
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-62.4%
Fair Value
$61.27
Current Price
$103.44
$42.17 premium
Margin of Safety
+11.4%
Fair Value
$75.35
Current Price
$65.02
$10.33 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Every $100 of equity generates 27 in profit
15.7% revenue growth
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
2.6% margin — thin
Operating margin of 4.0%
Elevated debt levels
Premium valuation, high expectations priced in
2.0% revenue growth
0.7% margin — thin
Operating margin of 3.0%
Comparative Analysis Report
WallStSmart ResearchBull 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 : KR
The strongest argument for KR centers on Altman Z-Score, PEG Ratio. PEG of 0.57 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 : KR
The primary concerns for KR are P/E Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 4.14 is elevated, increasing financial risk. Thin 0.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
BJ profiles as a growth stock while KR is a value play — different risk/reward profiles.
KR carries more volatility with a beta of 0.35 — expect wider price swings.
BJ is growing revenue faster at 15.7% — sustainability is the question.
BJ generates stronger free cash flow (224M), providing more financial flexibility.
Bottom Line
BJ scores higher overall (58/100 vs 55/100) and 15.7% 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.
Kroger Company
CONSUMER DEFENSIVE · GROCERY STORES · USA
The Kroger Company, or simply Kroger, is an American retail company founded by Bernard Kroger in 1883 in Cincinnati, Ohio.
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