BJs Wholesale Club (NYSE: WMT) and Walmart (NYSE:WMT) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for BJs Wholesale Club and Walmart, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BJs Wholesale Club 1 5 7 0 2.46
Walmart 0 18 15 0 2.45

BJs Wholesale Club currently has a consensus price target of $29.00, indicating a potential downside of 3.17%. Walmart has a consensus price target of $100.87, indicating a potential upside of 4.96%. Given Walmart’s higher possible upside, analysts plainly believe Walmart is more favorable than BJs Wholesale Club.

Insider & Institutional Ownership

65.7% of BJs Wholesale Club shares are owned by institutional investors. Comparatively, 29.4% of Walmart shares are owned by institutional investors. 51.1% of Walmart shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares BJs Wholesale Club and Walmart’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BJs Wholesale Club N/A N/A N/A N/A N/A
Walmart $500.34 billion 0.57 $9.86 billion $4.42 21.74

Walmart has higher revenue and earnings than BJs Wholesale Club.

Dividends

Walmart pays an annual dividend of $2.08 per share and has a dividend yield of 2.2%. BJs Wholesale Club does not pay a dividend. Walmart pays out 47.1% of its earnings in the form of a dividend. Walmart has raised its dividend for 43 consecutive years.

Profitability

This table compares BJs Wholesale Club and Walmart’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BJs Wholesale Club N/A N/A N/A
Walmart 1.02% 18.16% 6.87%

Summary

Walmart beats BJs Wholesale Club on 9 of the 12 factors compared between the two stocks.

BJs Wholesale Club Company Profile

BJ's Wholesale Club Holdings, Inc. operates as a warehouse club on the East Coast of the United States. It offers perishable, edible grocery, general merchandise, and non-edible grocery products. The company also sells electronics, computers, office supplies and equipment, home products, health and beauty aids, sporting goods, outdoor living, baby products, toys, and jewelry through Website. The company offers its products under the trademarks and service marks, such as BJ's Wholesale Club, BJ's, Wellsley Farms, Berkley Jensen, My BJ's Perks, BJ's Easy Renewal, BJ's Gas, BJ's Perks Elite, BJ's Perks Plus, Inner Circle, and BJ's Perks Rewards. As of February 3, 2018, it operated 215 clubs and 133 gasoline stations. The company was formerly known as Beacon Holding Inc. and changed its name to BJ's Wholesale Club Holdings, Inc. in February 2018. The company is based in Westborough, Massachusetts.

Walmart Company Profile

Walmart Inc. engages in the retail and wholesale operations in various formats worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, discount stores, drugstores, and convenience stores; membership-only warehouse clubs; e-commerce Websites, such as walmart.com, jet.com, hayneedle.com, shoes.com, moosejaw.com, modcloth.com, bonobos.com, and samsclub.com; and mobile commerce and voice-activated commerce applications. The company offers grocery products, including meat, produce, natural and organics, deli and bakery, dairy, frozen foods, alcoholic and nonalcoholic beverages, floral and dry grocery, as well as consumables, such as health and beauty aids, baby products, household chemicals, paper goods, and pet supplies; and health and wellness products. It also provides electronics, cameras and supplies, photo processing services, wireless, movies, music, video games, and books; stationery, automotive, hardware and paint, sporting goods, and outdoor living and horticulture; apparel for women, girls, men, boys, and infants, as well as shoes, jewelry, and accessories; and home furnishings, housewares and small appliances, bedding, home decor, toys, fabrics, crafts, and seasonal merchandise, as well as brand name merchandise. In addition, the company offers fuel and financial services and related products, including money orders, prepaid cards, wire and money transfers, check cashing, and bill payment, as well as consumer credit services. It operates 11,700 stores and various e-commerce Websites under the 65 banners in 28 countries. The company was formerly known as Wal-Mart Stores, Inc. and changed its name to Walmart Inc. in February 2018. Walmart Inc. was founded in 1945 and is based in Bentonville, Arkansas.

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