BJ’s Wholesale Club (NYSE:BJ) and Procter & Gamble (NYSE:PG) Head to Head Contrast

BJ’s Wholesale Club (NYSE:BJ) and Procter & Gamble (NYSE:PG) are both large-cap consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Profitability

This table compares BJ’s Wholesale Club and Procter & Gamble’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BJ’s Wholesale Club	2.77%	30.40%	8.14%
Procter & Gamble	19.74%	32.63%	13.53%

Institutional and Insider Ownership

98.6% of BJ’s Wholesale Club shares are held by institutional investors. Comparatively, 65.8% of Procter & Gamble shares are held by institutional investors. 1.4% of BJ’s Wholesale Club shares are held by insiders. Comparatively, 0.2% of Procter & Gamble shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for BJ’s Wholesale Club and Procter & Gamble, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BJ’s Wholesale Club	0	10	10	0	2.50
Procter & Gamble	0	9	12	0	2.57

BJ’s Wholesale Club presently has a consensus price target of $113.47, suggesting a potential upside of 21.40%. Procter & Gamble has a consensus price target of $171.53, suggesting a potential upside of 15.48%. Given BJ’s Wholesale Club’s higher possible upside, equities research analysts clearly believe BJ’s Wholesale Club is more favorable than Procter & Gamble.

Valuation and Earnings

This table compares BJ’s Wholesale Club and Procter & Gamble”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BJ’s Wholesale Club	$20.50 billion	0.60	$534.42 million	$4.36	21.44
Procter & Gamble	$84.93 billion	4.09	$15.97 billion	$6.85	21.68

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

Volatility and Risk

BJ’s Wholesale Club has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, Procter & Gamble has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.

Summary

Procter & Gamble beats BJ’s Wholesale Club on 11 of the 14 factors compared between the two stocks.

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.

About Procter & Gamble

Procter & Gamble Co. engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances. The Health Care segment includes oral care products like toothbrushes, toothpaste, and personal health care such as gastrointestinal, rapid diagnostics, respiratory, and vitamins, minerals, and supplements. The Fabric and Home care segment consists of fabric enhancers, laundry additives and detergents, and air, dish, and surface care. The Baby, Feminine and Family Care segment sells baby wipes, diapers, and pants, adult incontinence, feminine care, paper towels, tissues, and toilet paper. The company was founded by William Procter and James Gamble in 1837 and is headquartered in Cincinnati, OH.