WallStSmart

BJs Wholesale Club Holdings Inc (BJ)vsStrategic Education Inc (STRA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BJs Wholesale Club Holdings Inc generates 1589% more annual revenue ($21.46B vs $1.27B). STRA leads profitability with a 10.2% profit margin vs 2.7%. STRA appears more attractively valued with a PEG of 0.70. STRA earns a higher WallStSmart Score of 62/100 (C+).

BJ

Buy

52

out of 100

Grade: C-

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

STRA

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 5.5Value: 8.7Quality: 6.3
Piotroski: 4/9Altman Z: 3.68
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BJUndervalued (+24.9%)

Margin of Safety

+24.9%

Fair Value

$132.45

Current Price

$91.43

$41.02 discount

UndervaluedFair: $132.45Overvalued
STRAUndervalued (+73.4%)

Margin of Safety

+73.4%

Fair Value

$290.12

Current Price

$78.40

$211.72 discount

UndervaluedFair: $290.12Overvalued

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

STRA4 strengths · Avg: 9.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.6810/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.708/10

Growing faster than its price suggests

P/E RatioValuation
14.0x8/10

Attractively priced relative to earnings

Areas to Watch

BJ4 concerns · Avg: 3.5/10
PEG RatioValuation
2.364/10

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%

STRA3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.8%4/10

0.8% revenue growth

Market CapQuality
$1.80B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.9%3/10

ROE of 7.9% — 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 : STRA

The strongest argument for STRA centers on Price/Book, Altman Z-Score, PEG Ratio. PEG of 0.70 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 : STRA

The primary concerns for STRA are Revenue Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

STRA carries more volatility with a beta of 0.54 — expect wider price swings.

BJ is growing revenue faster at 5.6% — 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

STRA scores higher overall (62/100 vs 52/100). BJ offers better value entry with a 24.9% margin of safety. 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.

Strategic Education Inc

CONSUMER DEFENSIVE · EDUCATION & TRAINING SERVICES · USA

Strategic Education, Inc., offers postsecondary education and non-degree programs. The company is headquartered in Herndon, Virginia.

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