BJ's Wholesale Club vs Target
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KIRA’s take AI analyst
I put BJ's Wholesale Club and Target side by side, using each one’s latest annual report. Here is what stands out:
- Target is the larger business, with $104.8B of revenue in fiscal 2025 against $21.5B for BJ's Wholesale Club, about 4.9 times as much.
- BJ's Wholesale Club grew revenue faster (4.7%, against −1.7%).
- Target kept more of each dollar of sales as operating profit (4.9% operating margin, against 3.8%).
- Target turned more of its sales into free cash flow (2.7% FCF margin, against 1.5%).
- BJ's Wholesale Club earned a higher return on the capital invested in it (23.7%, against 15.0%).
- Investors pay more for each dollar of BJ's Wholesale Club’s earnings: a P/E of 23.3x against 15.4x for Target.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
BJ's Wholesale Club
BJ
6/11
Revenue growth5-year growthReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDA
Target
TGT
5/11
Gross marginOperating marginNet marginFCF marginShare count change
Side by side
Best in the row
| Latest fiscal year | BJ FY25 | TGT FY25 |
|---|---|---|
| Size | ||
| Market cap | $13.6B | $67.8B |
| Revenue | $21.5B | $104.8B |
| Free cash flow | $328M | $2.8B |
| Net income | $578M | $3.7B |
| Growth | ||
| Revenue growth | 4.7% | −1.7% |
| 5-year growth | 6.8% | 2.3% |
| Share count change | −1.2% | −1.3% |
| Profitability | ||
| Gross margin | 18.6% | 27.9% |
| Operating margin | 3.8% | 4.9% |
| Net margin | 2.7% | 3.5% |
| FCF margin | 1.5% | 2.7% |
| Return on capital | 23.7% | 15.0% |
| Return on equity | 28.6% | 24.0% |
| Balance sheet | ||
| Net debt | $523M | $11.0B |
| Net debt / EBITDA | 0.5x | 1.3x |
| Dividends and buybacks | $287M | $2.5B |
| Valuation & quality | ||
| P/E | 23.3x | 15.4x |
| Piotroski F-score | 8 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.