Comparing Edgewell Personal Care (NYSE:EPC) and BJ’s Wholesale Club (NYSE:BJ)

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

Analyst Recommendations

This is a summary of current ratings for BJ’s Wholesale Club and Edgewell Personal Care, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BJ’s Wholesale Club	1	8	9	0	2.44
Edgewell Personal Care	1	4	3	0	2.25

BJ’s Wholesale Club currently has a consensus target price of $105.27, suggesting a potential upside of 22.25%. Edgewell Personal Care has a consensus target price of $24.50, suggesting a potential upside of 40.33%. Given Edgewell Personal Care’s higher possible upside, analysts plainly believe Edgewell Personal Care is more favorable than BJ’s Wholesale Club.

Profitability

This table compares BJ’s Wholesale Club and Edgewell Personal Care’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BJ’s Wholesale Club	2.62%	26.67%	7.59%
Edgewell Personal Care	-3.69%	6.31%	2.57%

Institutional & Insider Ownership

98.6% of BJ’s Wholesale Club shares are held by institutional investors. Comparatively, 91.9% of Edgewell Personal Care shares are held by institutional investors. 1.1% of BJ’s Wholesale Club shares are held by insiders. Comparatively, 3.0% of Edgewell Personal Care shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

BJ’s Wholesale Club has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500. Comparatively, Edgewell Personal Care has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Earnings and Valuation

This table compares BJ’s Wholesale Club and Edgewell Personal Care”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BJ’s Wholesale Club	$21.46 billion	0.51	$578.38 million	$4.35	19.79
Edgewell Personal Care	$2.22 billion	0.36	$25.40 million	($1.67)	-10.45

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

Summary

BJ’s Wholesale Club beats Edgewell Personal Care 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 Edgewell Personal Care

Edgewell Personal Care Company is a manufacturer and marketer of personal care products in the wet shave, sun and skin care, feminine care and infant care categories. As of September 30, 2016, the Company had a portfolio of over 25 brands. It manages its business in four segments: Wet Shave, Sun and Skin Care, Feminine Care and All Other. Its Wet shave products are sold under the Schick, Wilkinson Sword, Edge, Skintimate, Shave Guard and Personna brand names. Its Sun and Skin Care products are sold under the Banana Boat, Hawaiian Tropic, Wet Ones and Playtex brand names and offers Wet Ones, portable hand wipes category, and Playtex household gloves, the branded household glove in the United States. Its Feminine Care segment markets its products under the Playtex, Stayfree, Carefree and o.b. brands and markets pads and liners. Its All Other segment includes infant care, pet care and miscellaneous other products.