Mad Money Spotlight: Cramer Likes BJ's

Sales at the company declined 5% to $15.48 billion, as membership fees fell 6%.

Granted, while it's clear that BJ's is currently the better retailer, there is some discrepancy when looking at the stock of both companies.

BJ's trades at 13 times its earnings, and is closer to its 52-week low than it is its high. Costco trades at 18 times its earnings. This, according to Cramer, makes BJ's the clear winner, and the stock to own in the warehouse space.

But Dan Fitzpatrick disagreed during his "3 Stocks I Saw on TV" segment Tuesday morning. He says that of the two, BJ's is a sloppy stock, trading all over the map.

"It looks like barf on a piece of paper," he said.

Costco's charts are more structured, and Fitzpatrick thinks there is more potential.

But if you do decide to go with BJ's, how do you protect yourself from volatility? Fitzpatrick says to take a small position going in, let it ride, and then add to it when you receive confirmation that you're right.