WallStSmart

BJs Wholesale Club Holdings Inc (BJ)vsLamb Weston Holdings Inc (LW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BJs Wholesale Club Holdings Inc generates 237% more annual revenue ($21.97B vs $6.52B). LW leads profitability with a 4.6% profit margin vs 2.6%. LW appears more attractively valued with a PEG of 1.06. LW earns a higher WallStSmart Score of 53/100 (C-).

BJ

Buy

50

out of 100

Grade: C-

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

LW

Buy

53

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 6.7Quality: 4.3
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BJSignificantly Overvalued (-71.1%)

Margin of Safety

-71.1%

Fair Value

$58.15

Current Price

$99.99

$41.84 premium

UndervaluedFair: $58.15Overvalued
LWUndervalued (+26.8%)

Margin of Safety

+26.8%

Fair Value

$68.66

Current Price

$53.55

$15.11 discount

UndervaluedFair: $68.66Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BJ2 strengths · Avg: 9.5/10
Altman Z-ScoreHealth
3.5810/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
26.9%9/10

Every $100 of equity generates 27 in profit

LW0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

BJ4 concerns · Avg: 3.3/10
PEG RatioValuation
2.254/10

Expensive relative to growth rate

Profit MarginProfitability
2.6%3/10

2.6% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

Debt/EquityHealth
1.353/10

Elevated debt levels

LW4 concerns · Avg: 2.5/10
Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Profit MarginProfitability
4.6%3/10

4.6% margin — thin

EPS GrowthGrowth
-62.2%2/10

Earnings declined 62.2%

Debt/EquityHealth
2.151/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : BJ

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

Bull Case : LW

PEG of 1.06 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 : LW

The primary concerns for LW are Revenue Growth, Profit Margin, EPS Growth. Debt-to-equity of 2.15 is elevated, increasing financial risk. Thin 4.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

LW carries more volatility with a beta of 0.46 — expect wider price swings.

BJ is growing revenue faster at 9.9% — sustainability is the question.

LW generates stronger free cash flow (201M), providing more financial flexibility.

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

Bottom Line

LW scores higher overall (53/100 vs 50/100). 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.

Lamb Weston Holdings Inc

CONSUMER DEFENSIVE · PACKAGED FOODS · USA

Lamb Weston Holdings, Inc. is an American food processing company that is one of the world's largest producers and processors of frozen french fries and other frozen potato products. It is headquartered in Eagle, Idaho.

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