BJ’s Wholesale Club (NYSE:BJ) vs. National Vision (NASDAQ:EYE) Critical Contrast

BJ’s Wholesale Club (NYSE:BJ) and National Vision (NASDAQ:EYE) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Profitability

This table compares BJ’s Wholesale Club and National Vision’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%
National Vision	2.31%	6.41%	2.81%

Valuation & Earnings

This table compares BJ’s Wholesale Club and National Vision”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BJ’s Wholesale Club	$21.46 billion	0.52	$578.38 million	$4.35	20.05
National Vision	$1.99 billion	0.77	$29.60 million	$0.57	33.35

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

Risk & Volatility

BJ’s Wholesale Club has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500. Comparatively, National Vision has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Institutional and Insider Ownership

98.6% of BJ’s Wholesale Club shares are held by institutional investors. 1.1% of BJ’s Wholesale Club shares are held by company insiders. Comparatively, 2.4% of National Vision shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for BJ’s Wholesale Club and National Vision, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BJ’s Wholesale Club	1	8	9	0	2.44
National Vision	0	5	7	0	2.58

BJ’s Wholesale Club currently has a consensus price target of $105.27, indicating a potential upside of 20.67%. National Vision has a consensus price target of $30.08, indicating a potential upside of 58.25%. Given National Vision’s stronger consensus rating and higher probable upside, analysts clearly believe National Vision is more favorable than BJ’s Wholesale Club.

Summary

BJ’s Wholesale Club beats National Vision on 8 of the 14 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 National Vision

National Vision Holdings, Inc., through its subsidiaries, operates as an optical retailer in the United States. The company operates in two segments, Owned & Host and Legacy. It offers eyeglasses and contact lenses, and optical accessory products; provides eye exams through its America’s Best, Eyeglass World, Vista Optical, Fred Meyer, and Vista Optical military, as well as Vision Center branded stores; and offers health maintenance organization and optometric services. National Vision Holdings, Inc. was founded in 1990 and is headquartered in Duluth, Georgia.