BJs Wholesale Club Holdings Inc (BJ)vsPepsiCo Inc (PEP)
BJ
BJs Wholesale Club Holdings Inc
$89.21
+0.92%
CONSUMER DEFENSIVE · Cap: $11.63B
PEP
PepsiCo Inc
$141.92
+1.37%
CONSUMER DEFENSIVE · Cap: $194.11B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 335% more annual revenue ($95.45B vs $21.97B). PEP leads profitability with a 9.2% profit margin vs 2.6%. PEP appears more attractively valued with a PEG of 1.52. PEP earns a higher WallStSmart Score of 62/100 (C+).
BJ
Buy50
out of 100
Grade: C-
PEP
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-71.6%
Fair Value
$58.00
Current Price
$89.21
$31.21 premium
Margin of Safety
-2.5%
Fair Value
$138.40
Current Price
$141.92
$3.52 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Every $100 of equity generates 23 in profit
Every $100 of equity generates 41 in profit
Large-cap with strong market position
Earnings expanding 27.8% YoY
Areas to Watch
Expensive relative to growth rate
2.6% margin — thin
Operating margin of 3.7%
Elevated debt levels
Expensive relative to growth rate
Trading at 9.1x book value
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : BJ
The strongest argument for BJ centers on Altman Z-Score, Return on Equity.
Bull Case : PEP
The strongest argument for PEP centers on Return on Equity, Market Cap, EPS 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 : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 2.47 is elevated, increasing financial risk.
Key Dynamics to Monitor
PEP carries more volatility with a beta of 0.39 — expect wider price swings.
BJ is growing revenue faster at 9.9% — sustainability is the question.
BJ generates stronger free cash flow (-42M), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PEP scores higher overall (62/100 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.
PepsiCo Inc
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
PepsiCo, Inc. is an American based multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manufacturing, distribution, and marketing of its products.
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