BJ’s Wholesale Club (NYSE:BJ) and Clicks Group (OTCMKTS:CLCGY) Critical Review

Clicks Group (OTCMKTS:CLCGY) and BJ’s Wholesale Club (NYSE:BJ) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Clicks Group	N/A	N/A	N/A
BJ’s Wholesale Club	2.62%	26.67%	7.59%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Clicks Group and BJ’s Wholesale Club, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clicks Group	0	1	0	0	2.00
BJ’s Wholesale Club	1	7	10	0	2.50

BJ’s Wholesale Club has a consensus target price of $105.93, suggesting a potential upside of 13.73%. Given BJ’s Wholesale Club’s stronger consensus rating and higher probable upside, analysts clearly believe BJ’s Wholesale Club is more favorable than Clicks Group.

Institutional & Insider Ownership

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

Earnings and Valuation

This table compares Clicks Group and BJ’s Wholesale Club”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clicks Group	N/A	N/A	N/A	N/A	N/A
BJ’s Wholesale Club	$21.46 billion	0.55	$578.38 million	$4.35	21.41

BJ’s Wholesale Club has higher revenue and earnings than Clicks Group.

Summary

BJ’s Wholesale Club beats Clicks Group on 9 of the 9 factors compared between the two stocks.

About Clicks Group

Clicks Group Limited, together with its subsidiaries, operates as a health, wellness, and beauty retailer in South Africa and internationally. It operates through two segments: Retail and Distribution. The company retails pharmacy, health, and beauty through stores, and in-store pharmacies for the middle to upper income markets under the Clicks brand name. It also offers various range of mother and baby products including baby hardware, accessories, health, foods, diapers and wipes, and baby toiletries under the Clicks Baby brand; beauty therapy, grooming, and ethnic hair care under the Sorbet brand name; diabetic clinic, travel clinic, and wounds management practice under the M-KEM brand; and naturally-inspired beauty products under The Body Shop brand name. In addition, the company involved in the wholesale and supply of pharmaceutical products to retail pharmacies, private hospitals, dispensing doctors, and retail health stores under the UPD brand. The company was formerly known as New Clicks Holdings Limited and changed its name to Clicks Group Limited in June 2009. Clicks Group Limited was founded in 1968 and is headquartered in Cape Town, South Africa.

About BJ’s Wholesale Club

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.