WallStSmart

BJs Wholesale Club Holdings Inc (BJ)vsPhilip Morris International Inc (PM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Philip Morris International Inc generates 87% more annual revenue ($42.55B vs $22.81B). PM leads profitability with a 25.6% profit margin vs 2.6%. BJ appears more attractively valued with a PEG of 2.19. BJ earns a higher WallStSmart Score of 58/100 (C).

BJ

Buy

58

out of 100

Grade: C

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

PM

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.0Value: 4.0Quality: 6.5
Piotroski: 4/9Altman Z: 2.02
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BJSignificantly Overvalued (-62.6%)

Margin of Safety

-62.6%

Fair Value

$61.20

Current Price

$91.49

$30.29 premium

UndervaluedFair: $61.20Overvalued
PMSignificantly Overvalued (-67.5%)

Margin of Safety

-67.5%

Fair Value

$114.04

Current Price

$191.06

$77.02 premium

UndervaluedFair: $114.04Overvalued

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
22.9%9/10

Every $100 of equity generates 23 in profit

Revenue GrowthGrowth
15.7%8/10

15.7% revenue growth

PM5 strengths · Avg: 9.4/10
Market CapQuality
$297.79B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
40.0%10/10

Strong operational efficiency at 40.0%

Debt/EquityHealth
-5.7210/10

Conservative balance sheet, low leverage

Profit MarginProfitability
25.6%9/10

Keeps 26 of every $100 in revenue as profit

Free Cash FlowQuality
$5.11B8/10

Generating 5.1B in free cash flow

Areas to Watch

BJ4 concerns · Avg: 3.3/10
PEG RatioValuation
2.194/10

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

PM4 concerns · Avg: 3.3/10
PEG RatioValuation
2.284/10

Expensive relative to growth rate

P/E RatioValuation
26.0x4/10

Moderate valuation

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

EPS GrowthGrowth
-7.5%2/10

Earnings declined 7.5%

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 : PM

The strongest argument for PM centers on Market Cap, Operating Margin, Debt/Equity. Profitability is solid with margins at 25.6% and operating margin at 40.0%. Revenue growth of 10.4% demonstrates continued momentum.

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 : PM

The primary concerns for PM are PEG Ratio, P/E Ratio, Return on Equity.

Key Dynamics to Monitor

BJ profiles as a growth stock while PM is a mature play — different risk/reward profiles.

PM carries more volatility with a beta of 0.40 — expect wider price swings.

BJ is growing revenue faster at 15.7% — sustainability is the question.

PM generates stronger free cash flow (5.1B), providing more financial flexibility.

Bottom Line

BJ scores higher overall (58/100 vs 54/100) 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.

Philip Morris International Inc

CONSUMER DEFENSIVE · TOBACCO · USA

Philip Morris International Inc. (PMI) is a Swiss-American multinational cigarette and tobacco manufacturing company, with products sold in over 180 countries. The most recognized and best selling product of the company is Marlboro.

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