Comprehensive Stock Comparison
Compare BJ's Wholesale Club Holdings, Inc. (BJ) vs Target Corporation (TGT) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | BJ | 2.7% revenue growth vs TGT's -0.8% |
| Value | TGT | Lower P/E (15.6x vs 22.6x) |
| Quality / Margins | TGT | 3.8% net margin vs BJ's 2.7% |
| Stability / Safety | TGT | Lower D/E ratio (135.5% vs 153.9%) |
| Dividends | TGT | 3.9% yield; 21-year raise streak; BJ pays no meaningful dividend |
| Momentum (1Y) | BJ | -2.4% vs TGT's -4.8% |
| Efficiency (ROA) | BJ | 7.6% ROA vs TGT's 6.7%, ROIC 12.8% vs 13.4% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
BJ's Wholesale Club operates a chain of membership-based warehouse clubs primarily on the U.S. East Coast, offering bulk groceries, general merchandise, and gasoline. It generates revenue through membership fees — which provide predictable recurring income — and merchandise sales, with gasoline representing a significant traffic driver and revenue stream. The company's competitive advantage lies in its membership model that creates customer loyalty and its strategic East Coast footprint that limits direct competition from larger national warehouse clubs.
Target is a large-format general merchandise retailer offering a curated assortment of essentials, apparel, home goods, and groceries at value prices. It generates revenue primarily through in-store sales (~95%) and digital channels (~5%), with additional income from credit card partnerships and in-store services like pharmacies and food courts. The company's competitive advantage lies in its "cheap chic" brand positioning—offering stylish private-label goods at affordable prices—and its efficient omnichannel fulfillment network that integrates stores as local distribution hubs.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
TGT leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). BJ leads in 2 (Profitability & Efficiency, Total Returns). 1 tied.
Financial Metrics (TTM)
TGT is the larger business by revenue, generating $105.4B annually — 5.0x BJ's $21.2B. Profitability is closely matched — net margins range from 3.8% (TGT) to 2.7% (BJ). On growth, BJ holds the edge at +4.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | BJBJ's Wholesale Cl… | TGTTarget Corporation |
|---|---|---|
| RevenueTrailing 12 months | $21.2B | $105.4B |
| EBITDAEarnings before interest/tax | $1.1B | $8.2B |
| Net IncomeAfter-tax profit | $575M | $4.0B |
| Free Cash FlowCash after capex | $256M | $5.5B |
| Gross MarginGross profit ÷ Revenue | +18.6% | +25.5% |
| Operating MarginEBIT ÷ Revenue | +3.9% | +4.8% |
| Net MarginNet income ÷ Revenue | +2.7% | +3.8% |
| FCF MarginFCF ÷ Revenue | +1.2% | +5.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +4.9% | -1.1% |
| EPS Growth (YoY)Latest quarter vs prior year | -1.7% | +13.5% |
Valuation Metrics
At 12.8x trailing earnings, TGT trades at a 48% valuation discount to BJ's 24.7x P/E. Adjusting for growth (PEG ratio), BJ offers better value at 1.02x vs TGT's 1.87x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | BJBJ's Wholesale Cl… | TGTTarget Corporation |
|---|---|---|
| Market CapShares × price | $13.0B | $51.8B |
| Enterprise ValueMkt cap + debt − cash | $15.8B | $70.8B |
| Trailing P/EPrice ÷ TTM EPS | 24.70x | 12.84x |
| Forward P/EPrice ÷ next-FY EPS est. | 22.63x | 15.61x |
| PEG RatioP/E ÷ EPS growth rate | 1.02x | 1.87x |
| EV / EBITDAEnterprise value multiple | 15.30x | 8.22x |
| Price / SalesMarket cap ÷ Revenue | 0.63x | 0.49x |
| Price / BookPrice ÷ Book value/share | 7.14x | 3.58x |
| Price / FCFMarket cap ÷ FCF | 41.56x | 11.58x |
Profitability & Efficiency
BJ delivers a 26.5% return on equity — every $100 of shareholder capital generates $26 in annual profit, vs $26 for TGT. TGT carries lower financial leverage with a 1.36x debt-to-equity ratio, signaling a more conservative balance sheet compared to BJ's 1.54x.
| Metric | BJBJ's Wholesale Cl… | TGTTarget Corporation |
|---|---|---|
| ROE (TTM)Return on equity | +26.5% | +26.1% |
| ROA (TTM)Return on assets | +7.6% | +6.7% |
| ROICReturn on invested capital | +12.8% | +13.4% |
| ROCEReturn on capital employed | +17.7% | +15.4% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 1.54x | 1.36x |
| Net DebtTotal debt minus cash | $2.8B | $19.0B |
| Cash & Equiv.Liquid assets | $28M | $869M |
| Total DebtShort + long-term debt | $2.8B | $19.9B |
| Interest CoverageEBIT ÷ Interest expense | 18.96x | 13.06x |
Total Returns (with DRIP)
A $10,000 investment in BJ five years ago would be worth $24,822 today (with dividends reinvested), compared to $7,238 for TGT. Over the past 12 months, BJ leads with a -2.4% total return vs TGT's -4.8%. The 3-year compound annual growth rate (CAGR) favors BJ at 11.2% vs TGT's -9.0% — a key indicator of consistent wealth creation.
| Metric | BJBJ's Wholesale Cl… | TGTTarget Corporation |
|---|---|---|
| YTD ReturnYear-to-date | +7.5% | +14.3% |
| 1-Year ReturnPast 12 months | -2.4% | -4.8% |
| 3-Year ReturnCumulative with dividends | +37.6% | -24.5% |
| 5-Year ReturnCumulative with dividends | +148.2% | -27.6% |
| 10-Year ReturnCumulative with dividends | +349.0% | +87.9% |
| CAGR (3Y)Annualised 3-year return | +11.2% | -9.0% |
Risk & Volatility
BJ is the less volatile stock with a -0.10 beta — it tends to amplify market swings less than TGT's 0.98 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. TGT currently trades 89.6% from its 52-week high vs BJ's 81.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | BJBJ's Wholesale Cl… | TGTTarget Corporation |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | -0.10x | 0.98x |
| 52-Week HighHighest price in past year | $121.10 | $127.06 |
| 52-Week LowLowest price in past year | $86.68 | $83.44 |
| % of 52W HighCurrent price vs 52-week peak | +81.6% | +89.6% |
| RSI (14)Momentum oscillator 0–100 | 48.8 | 56.6 |
| Avg Volume (50D)Average daily shares traded | 1.5M | 5.5M |
Analyst Outlook
Wall Street rates BJ as "Hold" and TGT as "Hold". Consensus price targets imply 1.2% upside for BJ (target: $100) vs -9.6% for TGT (target: $103). TGT is the only dividend payer here at 3.89% yield — a key consideration for income-focused portfolios.
| Metric | BJBJ's Wholesale Cl… | TGTTarget Corporation |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $100.00 | $102.87 |
| # AnalystsCovering analysts | 27 | 58 |
| Dividend YieldAnnual dividend ÷ price | +0.0% | +3.9% |
| Dividend StreakConsecutive years of raises | 4 | 21 |
| Dividend / ShareAnnual DPS | $0.00 | $4.43 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.7% | +1.9% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| BJ's Wholesale Club… (BJ) | 100 | 438.27 | +338.3% |
| Target Corporation (TGT) | 100 | 100.43 | +0.4% |
BJ's Wholesale Club… (BJ) returned +148% over 5 years vs Target Corporation (TGT)'s -28%. A $10,000 investment in BJ 5 years ago would be worth $24,822 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| BJ's Wholesale Club… (BJ) | $12.4B | $20.5B | +66.0% |
| Target Corporation (TGT) | $73.8B | $106.6B | +44.4% |
Target Corporation's revenue grew from $73.8B (2015) to $106.6B (2024) — a 4.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| BJ's Wholesale Club… (BJ) | 0.4% | 2.6% | +627.9% |
| Target Corporation (TGT) | 4.6% | 3.8% | -15.8% |
Target Corporation's net margin went from 5% (2015) to 4% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| BJ's Wholesale Club… (BJ) | 21.1 | 22.3 | +5.7% |
| Target Corporation (TGT) | 12.3 | 15.3 | +24.4% |
BJ's Wholesale Club Holdings, Inc. has traded in a 12x–22x P/E range over 7 years; current trailing P/E is ~25x. Target Corporation has traded in a 12x–25x P/E range over 8 years; current trailing P/E is ~13x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| BJ's Wholesale Club… (BJ) | 0.34 | 4 | +1076.5% |
| Target Corporation (TGT) | 5.31 | 8.86 | +66.9% |
Target Corporation's EPS grew from $5.31 (2015) to $8.86 (2024) — a 6% CAGR.
Chart 6Free Cash Flow — 5 Years
BJ's Wholesale Club Holdings, Inc. generated $313M FCF in 2024 (-41% vs 2021). Target Corporation generated $4B FCF in 2024 (-12% vs 2021).
BJ vs TGT: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is BJ or TGT a better buy right now?
Target Corporation (TGT) offers the better valuation at 12.8x trailing P/E (15.6x forward), making it the more compelling value choice. Analysts rate BJ's Wholesale Club Holdings, Inc. (BJ) a "Hold" — based on 27 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — BJ or TGT?
On trailing P/E, Target Corporation (TGT) is the cheapest at 12.8x versus BJ's Wholesale Club Holdings, Inc. at 24.7x. On forward P/E, Target Corporation is actually cheaper at 15.6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: BJ's Wholesale Club Holdings, Inc. wins at 0.93x versus Target Corporation's 2.28x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — BJ or TGT?
Over the past 5 years, BJ's Wholesale Club Holdings, Inc. (BJ) delivered a total return of +148.2%, compared to -27.6% for Target Corporation (TGT). A $10,000 investment in BJ five years ago would be worth approximately $25K today (assuming dividends reinvested). Over 10 years, the gap is even starker: BJ returned +349.0% versus TGT's +87.9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — BJ or TGT?
By beta (market sensitivity over 5 years), BJ's Wholesale Club Holdings, Inc. (BJ) is the lower-risk stock at -0.10β versus Target Corporation's 0.98β — meaning TGT is approximately -1105% more volatile than BJ relative to the S&P 500. On balance sheet safety, Target Corporation (TGT) carries a lower debt/equity ratio of 136% versus 154% for BJ's Wholesale Club Holdings, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — BJ or TGT?
Target Corporation (TGT) is the more profitable company, earning 3.8% net margin versus 2.6% for BJ's Wholesale Club Holdings, Inc. — meaning it keeps 3.8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TGT leads at 5.3% versus 3.8% for BJ. At the gross margin level — before operating expenses — TGT leads at 25.8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is BJ or TGT more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, BJ's Wholesale Club Holdings, Inc. (BJ) is the more undervalued stock at a PEG of 0.93x versus Target Corporation's 2.28x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Target Corporation (TGT) trades at 15.6x forward P/E versus 22.6x for BJ's Wholesale Club Holdings, Inc. — 7.0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BJ: 1.2% to $100.00.
07Which pays a better dividend — BJ or TGT?
In this comparison, TGT (3.9% yield) pays a dividend. BJ does not pay a meaningful dividend and should not be held primarily for income.
08Is BJ or TGT better for a retirement portfolio?
For long-horizon retirement investors, BJ's Wholesale Club Holdings, Inc. (BJ) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.10), +349.0% 10Y return). Both have compounded well over 10 years (BJ: +349.0%, TGT: +87.9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between BJ and TGT?
Both stocks operate in the Consumer Defensive sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: BJ is a mid-cap quality compounder stock; TGT is a mid-cap deep-value stock. TGT pays a dividend while BJ does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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