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 1673% more annual revenue ($22.81B vs $1.29B). STRA leads profitability with a 10.5% profit margin vs 2.6%. STRA appears more attractively valued with a PEG of 0.66. STRA earns a higher WallStSmart Score of 66/100 (B-).

BJ

Buy

58

out of 100

Grade: C

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

STRA

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 6.0Value: 8.7Quality: 7.5
Piotroski: 5/9Altman Z: 3.64
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
STRAUndervalued (+71.8%)

Margin of Safety

+71.8%

Fair Value

$273.85

Current Price

$81.66

$192.19 discount

UndervaluedFair: $273.85Overvalued

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

STRA6 strengths · Avg: 9.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.6410/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.668/10

Growing faster than its price suggests

P/E RatioValuation
13.6x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
24.8%8/10

Earnings expanding 24.8% YoY

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

STRA3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Market CapQuality
$1.81B3/10

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, Revenue Growth. Revenue growth of 15.7% demonstrates continued momentum.

Bull Case : STRA

The strongest argument for STRA centers on Price/Book, Debt/Equity, Altman Z-Score. PEG of 0.66 suggests the stock is reasonably priced for its 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 : STRA

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

Key Dynamics to Monitor

BJ profiles as a growth stock while STRA is a value play — different risk/reward profiles.

STRA carries more volatility with a beta of 0.50 — expect wider price swings.

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

BJ generates stronger free cash flow (224M), providing more financial flexibility.

Bottom Line

STRA scores higher overall (66/100 vs 58/100). Both earn "Strong 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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