Financial Review: Village Super Market (NASDAQ:VLGEA) versus BJ’s Wholesale Club (NYSE:BJ)

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for BJ’s Wholesale Club and Village Super Market, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BJ’s Wholesale Club 1 7 10 0 2.50
Village Super Market 0 0 1 0 3.00

BJ’s Wholesale Club presently has a consensus price target of $105.93, indicating a potential upside of 9.67%. Given BJ’s Wholesale Club’s higher possible upside, research analysts clearly believe BJ’s Wholesale Club is more favorable than Village Super Market.

Profitability

This table compares BJ’s Wholesale Club and Village Super Market’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%
Village Super Market 2.27% 10.80% 5.40%

Earnings & Valuation

This table compares BJ’s Wholesale Club and Village Super Market”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BJ’s Wholesale Club $21.46 billion 0.57 $578.38 million $4.35 22.20
Village Super Market $2.32 billion 0.28 $56.38 million $3.68 11.73

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

Risk & Volatility

BJ’s Wholesale Club has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500. Comparatively, Village Super Market has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

Institutional & Insider Ownership

98.6% of BJ’s Wholesale Club shares are owned by institutional investors. Comparatively, 39.0% of Village Super Market shares are owned by institutional investors. 1.1% of BJ’s Wholesale Club shares are owned by company insiders. Comparatively, 59.1% of Village Super Market shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

BJ’s Wholesale Club beats Village Super Market on 11 of the 14 factors compared between the two stocks.

About BJ’s Wholesale Club

(Get Free Report)

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 Village Super Market

(Get Free Report)

Village Super Market, Inc. operates a chain of supermarkets in the United States. The company offers grocery, meat, produce, dairy, deli, seafood, prepared foods, and bakery and frozen foods. It also provides non-food products, including health and beauty care, general merchandise, liquor, and pharmacy products through retail and online stores. Village Super Market, Inc. was founded in 1937 and is based in Springfield, New Jersey.

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