BJ’s Wholesale Club (BJ) and The Competition Head-To-Head Comparison

BJ’s Wholesale Club (NYSE:BJ) is one of 149 publicly-traded companies in the “Consumer Staples Distribution & Retail” industry, but how does it compare to its peers? We will compare BJ’s Wholesale Club to similar companies based on the strength of its analyst recommendations, dividends, valuation, risk, earnings, institutional ownership and profitability.

Risk and Volatility

BJ’s Wholesale Club has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500. Comparatively, BJ’s Wholesale Club’s peers have a beta of 0.44, meaning that their average stock price is 56% less volatile than the S&P 500.

Valuation & Earnings

This table compares BJ’s Wholesale Club and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
BJ’s Wholesale Club	$21.46 billion	$578.38 million	24.02
BJ’s Wholesale Club Competitors	$36.52 billion	$846.26 million	17.23

BJ’s Wholesale Club’s peers have higher revenue and earnings than BJ’s Wholesale Club. BJ’s Wholesale Club is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

98.6% of BJ’s Wholesale Club shares are owned by institutional investors. Comparatively, 45.0% of shares of all “Consumer Staples Distribution & Retail” companies are owned by institutional investors. 1.1% of BJ’s Wholesale Club shares are owned by insiders. Comparatively, 19.7% of shares of all “Consumer Staples Distribution & Retail” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for BJ’s Wholesale Club and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BJ’s Wholesale Club	1	9	9	1	2.50
BJ’s Wholesale Club Competitors	2243	8276	10067	459	2.42

BJ’s Wholesale Club currently has a consensus price target of $106.19, suggesting a potential downside of 3.27%. As a group, “Consumer Staples Distribution & Retail” companies have a potential upside of 58.09%. Given BJ’s Wholesale Club’s peers higher possible upside, analysts clearly believe BJ’s Wholesale Club has less favorable growth aspects than its peers.

Profitability

This table compares BJ’s Wholesale Club and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BJ’s Wholesale Club	2.62%	27.40%	7.69%
BJ’s Wholesale Club Competitors	-25.86%	3.88%	2.96%

Summary

BJ’s Wholesale Club beats its peers on 7 of the 13 factors compared.

BJ’s Wholesale Club Company Profile

BJ’s Wholesale Club Holdings, Inc. engages in the operation of membership warehouse clubs. Its product categories include grocery, household and pet, television and electronics, furniture, computer and tablets, patio and outdoor living, lawn and garden, baby and kids, toys, home, health and beauty, appliances, and jewelry. The company was founded in 1984 and is headquartered in Marlborough, MA.