Head-To-Head Contrast: North West (OTCMKTS:NNWWF) versus BJ’s Wholesale Club (NYSE:BJ)

BJ’s Wholesale Club (NYSE:BJ) and North West (OTCMKTS:NNWWF) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Institutional and Insider Ownership

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

Valuation & Earnings

This table compares BJ’s Wholesale Club and North West”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	$22.81 billion	0.51	$578.38 million	$4.57	20.01
North West	N/A	N/A	N/A	N/A	N/A

BJ’s Wholesale Club has higher revenue and earnings than North West.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BJ’s Wholesale Club	2.64%	27.40%	7.69%
North West	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and target prices for BJ’s Wholesale Club and North West, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BJ’s Wholesale Club	1	9	10	0	2.45
North West	0	0	1	0	3.00

BJ’s Wholesale Club currently has a consensus price target of $106.06, suggesting a potential upside of 15.97%. North West has a consensus price target of $56.00, suggesting a potential upside of 56.29%. Given North West’s stronger consensus rating and higher probable upside, analysts plainly believe North West is more favorable than BJ’s Wholesale Club.

Summary

BJ’s Wholesale Club beats North West on 7 of the 9 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 North West

The North West Company Inc., through its subsidiaries, engages in the retail of food and everyday products and services to rural communities and urban neighborhood markets in northern Canada, rural Alaska, the South Pacific, and the Caribbean. The company operates Northern stores, which offers food, financial services, and general merchandise; NorthMart stores that provides fresh food products, apparel, and health products and services; and Quickstop convenience stores that provides ready-to-eat food products, and fuel and related services. It also operates Giant Tiger junior discount stores, which offers family fashion, household products, and food products; Valu Lots discount center and direct-to-customer food distribution outlet; solo market, a store in remote market; Pharmacy and Convenience stores; and NWC Motorsports, a dealership that offers sales, service, parts and accessories for Ski-doo, Honda, Can-am and other premier brands. In addition, the company distributes produce and fresh meats to independent grocery stores; provides contract tele-pharmacist services to rural hospitals and health centers; and engages in the water and air-based transportation businesses. Further, it operates Alaska Commercial Company stores that provides food and general merchandise to remote and rural regions; Pacific Alaska wholesale, a distributor to independent grocery stores, commercial accounts, and individual households; Riteway food markets; and Cost-U-Less mid-size warehouse stores, which offers discount food and general merchandise. The company was founded in 1668 and is headquartered in Winnipeg, Canada.