WallStSmart

BJs Wholesale Club Holdings Inc (BJ)vsSprouts Farmers Market LLC (SFM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BJs Wholesale Club Holdings Inc generates 144% more annual revenue ($21.46B vs $8.81B). SFM leads profitability with a 6.0% profit margin vs 2.7%. SFM appears more attractively valued with a PEG of 1.14. SFM earns a higher WallStSmart Score of 62/100 (C+).

BJ

Buy

52

out of 100

Grade: C-

Growth: 4.7Profit: 6.0Value: 4.0Quality: 5.8
Piotroski: 5/9Altman Z: 3.87

SFM

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 7.0Value: 8.0Quality: 5.0
Piotroski: 3/9Altman Z: 3.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BJSignificantly Overvalued (-83.2%)

Margin of Safety

-83.2%

Fair Value

$54.31

Current Price

$99.61

$45.30 premium

UndervaluedFair: $54.31Overvalued
SFMUndervalued (+65.9%)

Margin of Safety

+65.9%

Fair Value

$192.43

Current Price

$77.40

$115.03 discount

UndervaluedFair: $192.43Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BJ2 strengths · Avg: 9.5/10
Altman Z-ScoreHealth
3.8710/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
28.6%9/10

Every $100 of equity generates 29 in profit

SFM3 strengths · Avg: 9.3/10
Return on EquityProfitability
38.4%10/10

Every $100 of equity generates 38 in profit

Altman Z-ScoreHealth
3.1410/10

Safe zone — low bankruptcy risk

P/E RatioValuation
14.6x8/10

Attractively priced relative to earnings

Areas to Watch

BJ4 concerns · Avg: 3.5/10
PEG RatioValuation
2.454/10

Expensive relative to growth rate

EPS GrowthGrowth
3.5%4/10

3.5% earnings growth

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Operating MarginProfitability
3.2%3/10

Operating margin of 3.2%

SFM3 concerns · Avg: 3.0/10
Profit MarginProfitability
6.0%3/10

6.0% margin — thin

Debt/EquityHealth
1.393/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : BJ

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

Bull Case : SFM

The strongest argument for SFM centers on Return on Equity, Altman Z-Score, P/E Ratio. PEG of 1.14 suggests the stock is reasonably priced for its growth.

Bear Case : BJ

The primary concerns for BJ are PEG Ratio, EPS Growth, Profit Margin. Thin 2.7% margins leave little buffer for downturns.

Bear Case : SFM

The primary concerns for SFM are Profit Margin, Debt/Equity, Piotroski F-Score.

Key Dynamics to Monitor

SFM carries more volatility with a beta of 0.70 — expect wider price swings.

SFM is growing revenue faster at 7.6% — sustainability is the question.

BJ generates stronger free cash flow (193M), providing more financial flexibility.

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

Bottom Line

SFM scores higher overall (62/100 vs 52/100). 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.

Sprouts Farmers Market LLC

CONSUMER DEFENSIVE · GROCERY STORES · USA

Sprouts Farmers Market, Inc. offers fresh, natural and organic food products in the United States. The company is headquartered in Phoenix, Arizona.

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