BJ’s Wholesale Club (NYSE:BJ) & Tokyo Lifestyle (NASDAQ:TKLF) Head to Head Review

BJ’s Wholesale Club (NYSE:BJ) and Tokyo Lifestyle (NASDAQ:TKLF) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Volatility & Risk

BJ’s Wholesale Club has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Tokyo Lifestyle has a beta of 0.03, meaning that its share price is 97% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for BJ’s Wholesale Club and Tokyo Lifestyle, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BJ’s Wholesale Club	0	9	10	0	2.53
Tokyo Lifestyle	0	0	0	0	0.00

BJ’s Wholesale Club currently has a consensus target price of $113.18, indicating a potential upside of 16.23%. Given BJ’s Wholesale Club’s stronger consensus rating and higher possible upside, analysts clearly believe BJ’s Wholesale Club is more favorable than Tokyo Lifestyle.

Earnings and Valuation

This table compares BJ’s Wholesale Club and Tokyo Lifestyle”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BJ’s Wholesale Club	$20.50 billion	0.63	$534.42 million	$4.36	22.33
Tokyo Lifestyle	$210.12 million	0.07	$6.64 million	N/A	N/A

BJ’s Wholesale Club has higher revenue and earnings than Tokyo Lifestyle.

Insider & Institutional Ownership

98.6% of BJ’s Wholesale Club shares are owned by institutional investors. 1.4% of BJ’s Wholesale Club shares are owned by insiders. Comparatively, 75.4% of Tokyo Lifestyle shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares BJ’s Wholesale Club and Tokyo Lifestyle’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%
Tokyo Lifestyle	N/A	N/A	N/A

Summary

BJ’s Wholesale Club beats Tokyo Lifestyle on 11 of the 12 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 Tokyo Lifestyle

Yoshitsu Co., Ltd engages in the retail and wholesale of beauty, health, and other products. It offers beauty products, such as cosmetics comprising of foundation, powder, concealer, makeup remover, eyeliner, eye shadow, brow powder, brow pencil, mascara, lip gloss, lipstick, and nail polish; skin care products consisting of facial cleanser, whitening products, sun block, moisturizer, facial mask, eye mask, eye gel, and exfoliating; and cosmetic applicators, such as brush, puff, curler, hair iron, and shaver products. The company also provides body care products, such as shampoo, conditioner, and body wash; and fragrance products consisting of perfume and cologne for women and men. In addition, the company provides facial wash, firming lotion, astringent, and moisturizer products for men; and lip balm, lotion, shampoo, soap, and essence oil for children. Further, the company offers OTC drugs for the treatment of common ailments, such as colds, headaches, stomach pain, cough, and eye strains, as well as medical supplies and devices, including bandages, masks, thermometers, disinfectant sprays, eye masks, contact lens, and contact lens cleaners and solutions. Additionally, the company provides vitamins, minerals, fiber supplements, nutritional yeast, dietary products, and other nutritional supplements; bedding and bath products, and car supplies; and food, alcoholic beverages, and miscellaneous products. It directly operates physical stores in Japan and Hong Kong; online stores in Japan, China, and Korea; and franchise stores in the United States, Canada, and the United Kingdom, as well as wholesale customers in Japan, China, the United States, and Canada. The company was incorporated in 2006 and is headquartered in Tokyo, Japan.