BJs Wholesale Club (NASDAQ: DLTR) and Dollar Tree (NASDAQ:DLTR) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.
Earnings & Valuation
This table compares BJs Wholesale Club and Dollar Tree’s top-line revenue, earnings per share 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|
|Dollar Tree||$22.25 billion||0.90||$1.71 billion||$4.86||17.40|
This table compares BJs Wholesale Club and Dollar Tree’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|
Institutional & Insider Ownership
65.7% of BJs Wholesale Club shares are held by institutional investors. Comparatively, 92.2% of Dollar Tree shares are held by institutional investors. 1.5% of Dollar Tree shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for BJs Wholesale Club and Dollar Tree, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BJs Wholesale Club||1||5||7||0||2.46|
BJs Wholesale Club presently has a consensus target price of $29.45, indicating a potential upside of 3.20%. Dollar Tree has a consensus target price of $102.19, indicating a potential upside of 20.83%. Given Dollar Tree’s stronger consensus rating and higher possible upside, analysts clearly believe Dollar Tree is more favorable than BJs Wholesale Club.
Dollar Tree beats BJs Wholesale Club on 10 of the 10 factors compared between the two stocks.
About BJs Wholesale Club
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.
About Dollar Tree
Dollar Tree, Inc. operates discount variety retail stores in the United States and Canada. It operates through two segments, Dollar Tree and Family Dollar. The Dollar Tree segment offers merchandise at the fixed price of $1.00. It provides consumable merchandise, including candy and food, and health and beauty care products, as well as everyday consumables, such as household paper and chemicals, and frozen and refrigerated food; various merchandise comprising toys, durable housewares, gifts, stationery, party goods, greeting cards, softlines, and other items; and seasonal goods, which include Valentine's Day, Easter, Halloween, and Christmas merchandise. This segment operates 6,650 stores under the Dollar Tree and Dollar Tree Canada brands, as well as 11 distribution centers in the United States and 2 in Canada, and a store support center in Chesapeake, Virginia. The Family Dollar segment operates general merchandise discount retail stores that offer consumable merchandise, which comprise food, tobacco, health and beauty aids, household chemicals, paper products, hardware and automotive supplies, diapers, batteries, and pet food and supplies; and home products, including housewares, home décor, and giftware, as well as domestics, such as comforters, sheets, and towels. It also provides apparel and accessories merchandise comprising clothing, fashion accessories, and shoes; and seasonal and electronics merchandise, which include Valentine's Day, Easter, Halloween, and Christmas merchandise, as well as personal electronics that comprise pre-paid cellular phones and services, stationery and school supplies, and toys. This segment operates 8,185 stores under the Family Dollar brand, 11 distribution centers, and a store support center in Matthews, North Carolina. Dollar Tree, Inc. was founded in 1986 and is headquartered in Chesapeake, Virginia.
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