Analyzing Village Super Market (NASDAQ:VLGEA) & BJ’s Wholesale Club (NYSE:BJ)

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

Analyst Ratings

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

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

BJ’s Wholesale Club has a consensus price target of $105.93, suggesting a potential upside of 12.75%. Given BJ’s Wholesale Club’s higher probable upside, analysts clearly believe BJ’s Wholesale Club is more favorable than Village Super Market.

Valuation & Earnings

This table compares Village Super Market 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
Village Super Market $2.32 billion 0.27 $56.38 million $3.68 11.34
BJ’s Wholesale Club $21.97 billion 0.55 $578.38 million $4.35 21.60

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.

Profitability

This table compares Village Super Market and BJ’s Wholesale Club’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Village Super Market 2.27% 10.80% 5.40%
BJ’s Wholesale Club 2.62% 26.67% 7.59%

Volatility and Risk

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

Institutional & Insider Ownership

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

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.

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