National Vision (NASDAQ:EYE) and BJ’s Wholesale Club (NYSE:BJ) Critical Review

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

Profitability

This table compares National Vision and BJ’s Wholesale Club’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Vision 2.31% 6.41% 2.81%
BJ’s Wholesale Club 2.62% 26.67% 7.59%

Analyst Ratings

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

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

National Vision currently has a consensus target price of $30.08, indicating a potential upside of 71.74%. BJ’s Wholesale Club has a consensus target price of $105.27, indicating a potential upside of 20.06%. Given National Vision’s stronger consensus rating and higher probable upside, equities analysts plainly believe National Vision is more favorable than BJ’s Wholesale Club.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Vision $1.99 billion 0.71 $29.60 million $0.57 30.73
BJ’s Wholesale Club $21.46 billion 0.52 $578.38 million $4.35 20.16

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 and Volatility

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

Insider & Institutional Ownership

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

Summary

BJ’s Wholesale Club beats National Vision on 8 of the 14 factors compared between the two stocks.

About National Vision

(Get Free Report)

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.

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.

Receive News & Ratings for National Vision Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for National Vision and related companies with MarketBeat.com's FREE daily email newsletter.