WallStSmart

BJs Wholesale Club Holdings Inc (BJ)vsAltria Group (MO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BJs Wholesale Club Holdings Inc generates 8% more annual revenue ($21.97B vs $20.38B). MO leads profitability with a 39.5% profit margin vs 2.6%. MO appears more attractively valued with a PEG of 1.67. MO earns a higher WallStSmart Score of 61/100 (C+).

BJ

Buy

50

out of 100

Grade: C-

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

MO

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 4.7Quality: 6.5
Piotroski: 4/9Altman Z: 2.86
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
MOSignificantly Overvalued (-63.6%)

Margin of Safety

-63.6%

Fair Value

$45.73

Current Price

$74.82

$29.09 premium

UndervaluedFair: $45.73Overvalued

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

MO6 strengths · Avg: 9.5/10
Profit MarginProfitability
39.5%10/10

Keeps 40 of every $100 in revenue as profit

Operating MarginProfitability
62.3%10/10

Strong operational efficiency at 62.3%

EPS GrowthGrowth
106.3%10/10

Earnings expanding 106.3% YoY

Debt/EquityHealth
-7.6610/10

Conservative balance sheet, low leverage

Market CapQuality
$121.89B9/10

Large-cap with strong market position

P/E RatioValuation
15.3x8/10

Attractively priced relative to earnings

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

MO2 concerns · Avg: 3.5/10
PEG RatioValuation
1.674/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — 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 : MO

The strongest argument for MO centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 39.5% and operating margin at 62.3%.

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 : MO

The primary concerns for MO are PEG Ratio, Return on Equity.

Key Dynamics to Monitor

BJ profiles as a value stock while MO is a mature play — different risk/reward profiles.

MO carries more volatility with a beta of 0.49 — expect wider price swings.

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

MO generates stronger free cash flow (2.2B), providing more financial flexibility.

Bottom Line

MO scores higher overall (61/100 vs 50/100), backed by strong 39.5% margins. 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.

Altria Group

CONSUMER DEFENSIVE · TOBACCO · USA

Altria Group, Inc. (previously known as Philip Morris Companies, Inc.) is an American corporation and one of the world's largest producers and marketers of tobacco, cigarettes and related products. It operates worldwide and is headquartered in unincorporated Henrico County, Virginia, just outside the city of Richmond.

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