BJ's Wholesale Club Holdings, Inc. (BJ) vs Target Corporation (TGT)

BJ's Wholesale Club Holdings, Inc. and Target Corporation are both Discount Stores companies. Target Corporation is the larger, with a market value of $72.5B against $11.6B — 6.3× the size. Target Corporation trades at the lower P/E: 16.3× against 20.3×. BJ's Wholesale Club Holdings, Inc. grew revenue faster over the last twelve months: 9.09% against 1.95%. Target Corporation has the higher net margin (4.08% vs 2.61%) and the lower return on invested capital (13.6% vs 19.2%). Across the 22 metrics below, BJ's Wholesale Club Holdings, Inc. leads on 11 and Target Corporation on 11.

Valuation

Metric BJ TGT Discount Stores median
P/E 20.34 16.27 19.55
P/S 0.52 0.66 1.08
P/B 5.43 4.01 5.43
Price to free cash flow 33.31 16.06 33.31
EV/EBITDA 10.80 8.86 12.17
EV/Sales 0.55 0.76 1.06
Earnings yield 4.92% 6.15% 3.95%
Free cash flow yield 3.00% 6.23% 2.93%

Profitability

Metric BJ TGT Discount Stores median
Gross margin 18.24% 29.30% 27.27%
Operating margin 3.76% 5.59% 4.45%
Net margin 2.61% 4.08% 3.01%
Free cash flow margin 1.57% 4.14% 3.30%
Return on equity 27.67% 26.41% 20.83%
Return on assets 7.81% 7.38% 7.60%
Return on invested capital 19.15% 13.55% 13.21%

Growth

Metric BJ TGT Discount Stores median
Revenue growth (TTM) 9.09% 1.95% 8.64%
EPS growth (last fiscal year) 9.50% (8.24%) —
Revenue growth, 5-year CAGR 6.82% 2.29% 4.99%
Net income growth, 5-year CAGR 6.56% (3.24%) 0.00%

Health

Metric BJ TGT Discount Stores median
Debt to equity 0.29 0.86 0.39
Current ratio 0.73 0.99 1.03
Net debt to EBITDA 0.43 1.33 0.59

Dividend

Metric BJ TGT Discount Stores median
Dividend yield — 2.91% 2.12%
Payout ratio 0.00 0.59 0.24

Size

Metric BJ TGT Discount Stores median
Market cap 11.60b 72.51b 16.44b

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