WallStSmart

BJs Wholesale Club Holdings Inc (BJ)vsUS Foods Holding Corp (USFD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

US Foods Holding Corp generates 84% more annual revenue ($39.42B vs $21.46B). BJ leads profitability with a 2.7% profit margin vs 1.7%. USFD appears more attractively valued with a PEG of 0.24. USFD earns a higher WallStSmart Score of 64/100 (C+).

BJ

Buy

52

out of 100

Grade: C-

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

USFD

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 5.5Value: 7.3Quality: 6.0
Piotroski: 4/9Altman Z: 3.60
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
USFDUndervalued (+28.0%)

Margin of Safety

+28.0%

Fair Value

$124.84

Current Price

$93.49

$31.35 discount

UndervaluedFair: $124.84Overvalued

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

USFD3 strengths · Avg: 10.0/10
PEG RatioValuation
0.2410/10

Growing faster than its price suggests

EPS GrowthGrowth
205.9%10/10

Earnings expanding 205.9% YoY

Altman Z-ScoreHealth
3.6010/10

Safe zone — low bankruptcy risk

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%

USFD4 concerns · Avg: 3.5/10
P/E RatioValuation
31.1x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
3.3%4/10

3.3% revenue growth

Profit MarginProfitability
1.7%3/10

1.7% margin — thin

Operating MarginProfitability
3.6%3/10

Operating margin of 3.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : BJ

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

Bull Case : USFD

The strongest argument for USFD centers on PEG Ratio, EPS Growth, Altman Z-Score. PEG of 0.24 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 : USFD

The primary concerns for USFD are P/E Ratio, Revenue Growth, Profit Margin. Thin 1.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

USFD carries more volatility with a beta of 0.98 — 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

USFD scores higher overall (64/100 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.

US Foods Holding Corp

CONSUMER DEFENSIVE · FOOD DISTRIBUTION · USA

US Foods Holding Corp. The company is headquartered in Rosemont, Illinois.

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