Comparing Verus International (OTCMKTS:VRUS) and BJ’s Wholesale Club (NYSE:BJ)

BJ’s Wholesale Club (NYSE:BJ) and Verus International (OTCMKTS:VRUS) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Institutional & Insider Ownership

98.6% of BJ’s Wholesale Club shares are held by institutional investors. Comparatively, 86.3% of Verus International shares are held by institutional investors. 1.1% of BJ’s Wholesale Club shares are held by company insiders. Comparatively, 3.2% of Verus International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BJ’s Wholesale Club	2.62%	26.67%	7.59%
Verus International	N/A	N/A	N/A

Earnings and Valuation

This table compares BJ’s Wholesale Club and Verus International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BJ’s Wholesale Club	$21.46 billion	0.58	$578.38 million	$4.35	22.23
Verus International	N/A	N/A	N/A	($1.25)	N/A

BJ’s Wholesale Club has higher revenue and earnings than Verus International. Verus International is trading at a lower price-to-earnings ratio than BJ’s Wholesale Club, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for BJ’s Wholesale Club and Verus International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BJ’s Wholesale Club	1	7	10	0	2.50
Verus International	0	0	0	0	0.00

BJ’s Wholesale Club presently has a consensus target price of $105.93, suggesting a potential upside of 9.54%. Given BJ’s Wholesale Club’s stronger consensus rating and higher possible upside, equities analysts clearly believe BJ’s Wholesale Club is more favorable than Verus International.

Summary

BJ’s Wholesale Club beats Verus International on 9 of the 10 factors compared between the two stocks.

About BJ’s Wholesale Club

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.

About Verus International

Verus International, Inc. does not have significant operations. Previously, it was engaged in the supply of consumer food products. The company was formerly known as RealBiz Media Group, Inc. and changed its name to Verus International, Inc. in October 2018. Verus International, Inc. was incorporated in 1994 and is based in Stafford, Texas.