BJ's Wholesale Club Holdings, Inc. (BJ) vs Costco Wholesale Corporation (COST)

BJ's Wholesale Club Holdings, Inc. and Costco Wholesale Corporation are both Discount Stores companies. Costco Wholesale Corporation is the larger, with a market value of $396.7B against $11.6B — 34.2× the size. BJ's Wholesale Club Holdings, Inc. trades at the lower P/E: 20.3× against 46.3×. Costco Wholesale Corporation grew revenue faster over the last twelve months: 9.23% against 9.09%. Costco Wholesale Corporation has the higher net margin (3.01% vs 2.61%) and the higher return on invested capital (36.6% vs 19.2%). Across the 22 metrics below, Costco Wholesale Corporation leads on 13 and BJ's Wholesale Club Holdings, Inc. on 9.

Valuation

Metric BJ COST Discount Stores median
P/E 20.34 46.30 19.55
P/S 0.52 1.39 1.08
P/B 5.43 12.21 5.43
Price to free cash flow 33.31 46.47 33.31
EV/EBITDA 10.80 28.65 12.17
EV/Sales 0.55 1.35 1.06
Earnings yield 4.92% 2.16% 3.95%
Free cash flow yield 3.00% 2.15% 2.93%

Profitability

Metric BJ COST Discount Stores median
Gross margin 18.24% 12.88% 27.27%
Operating margin 3.76% 3.82% 4.45%
Net margin 2.61% 3.01% 3.01%
Free cash flow margin 1.57% 3.00% 3.30%
Return on equity 27.67% 29.15% 20.83%
Return on assets 7.81% 10.92% 7.60%
Return on invested capital 19.15% 36.57% 13.21%

Growth

Metric BJ COST Discount Stores median
Revenue growth (TTM) 9.09% 9.23% 8.64%
EPS growth (last fiscal year) 9.50% 9.96% —
Revenue growth, 5-year CAGR 6.82% 10.54% 4.99%
Net income growth, 5-year CAGR 6.56% 15.14% 0.00%

Health

Metric BJ COST Discount Stores median
Debt to equity 0.29 0.17 0.39
Current ratio 0.73 1.07 1.03
Net debt to EBITDA 0.43 (0.75) 0.59

Dividend

Metric BJ COST Discount Stores median
Dividend yield — 2.58% 2.12%
Payout ratio 0.00 0.28 0.24

Size

Metric BJ COST Discount Stores median
Market cap 11.60b 396.68b 16.44b

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