BJ’s Wholesale Club (NYSE:BJ) vs. Swatch Group (OTCMKTS:SWGAY) Critical Analysis

Swatch Group (OTCMKTS:SWGAY) and BJ’s Wholesale Club (NYSE:BJ) are both large-cap consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Volatility and Risk

Swatch Group has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, BJ’s Wholesale Club has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500.

Insider and Institutional Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Swatch Group	N/A	N/A	N/A
BJ’s Wholesale Club	2.62%	26.67%	7.59%

Valuation and Earnings

This table compares Swatch Group and BJ’s Wholesale Club”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Swatch Group	$7.58 billion	3.35	$3.62 million	N/A	N/A
BJ’s Wholesale Club	$21.46 billion	0.55	$578.38 million	$4.35	21.13

BJ’s Wholesale Club has higher revenue and earnings than Swatch Group.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Swatch Group	0	4	0	0	2.00
BJ’s Wholesale Club	1	8	9	0	2.44

BJ’s Wholesale Club has a consensus target price of $105.27, indicating a potential upside of 14.54%. Given BJ’s Wholesale Club’s stronger consensus rating and higher probable upside, analysts plainly believe BJ’s Wholesale Club is more favorable than Swatch Group.

Summary

BJ’s Wholesale Club beats Swatch Group on 10 of the 12 factors compared between the two stocks.

About Swatch Group

The Swatch Group AG designs, manufactures, and sells finished watches, jewelry, and watch movements and components worldwide. The company operates through Watches & Jewelry and Electronic Systems segments. The Watches & Jewelry segment designs, produces, and commercializes watches and jewelry. The Electronic Systems segment engages in the design, production, and commercialization of electronic components, as well as sports timing activities. It is also involved in the provision of assembly, research and development, administration, polishing, logistics and distribution, and customer services; and hard material products, microelectronics, watch cases and crowns, miniature low-frequency quartz crystals, thin wires, miniature batteries, watch dials, watch hands, bracelets, sports timing technology and equipment, precision parts, and assembly electronic components. In addition, the company engages in retail, communication, real estate, real estate management, finance, reinsurance, and art center businesses. It offers its watch and jewelry products primarily under the Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Longines, Rado, Union Glashütte, Tissot, Balmain, Certina, Mido, Hamilton, Swatch, and Flik Flak brands. The Swatch Group AG was founded in 1983 and is headquartered in Biel/Bienne, Switzerland.

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.