Ross Stores (NASDAQ:ROST) and The TJX Companies (NYSE:TJX) are both large-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.
Profitability
This table compares Ross Stores and The TJX Companies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Ross Stores | 2.39% | 22.57% | 6.19% |
The TJX Companies | 2.24% | 14.34% | 2.78% |
Analyst Ratings
This is a summary of current recommendations and price targets for Ross Stores and The TJX Companies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Ross Stores | 0 | 4 | 19 | 0 | 2.83 |
The TJX Companies | 0 | 4 | 18 | 1 | 2.87 |
Ross Stores presently has a consensus target price of $113.0909, suggesting a potential downside of 6.39%. The TJX Companies has a consensus target price of $68.88, suggesting a potential upside of 2.39%. Given The TJX Companies' stronger consensus rating and higher probable upside, analysts plainly believe The TJX Companies is more favorable than Ross Stores.
Volatility and Risk
Ross Stores has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, The TJX Companies has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.
Insider & Institutional Ownership
83.2% of Ross Stores shares are held by institutional investors. Comparatively, 88.8% of The TJX Companies shares are held by institutional investors. 2.0% of Ross Stores shares are held by insiders. Comparatively, 0.2% of The TJX Companies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Ross Stores and The TJX Companies' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Ross Stores | $16.04 billion | 2.68 | $1.66 billion | $4.58 | 26.38 |
The TJX Companies | $41.72 billion | 1.94 | $3.27 billion | $2.67 | 25.19 |
The TJX Companies has higher revenue and earnings than Ross Stores. The TJX Companies is trading at a lower price-to-earnings ratio than Ross Stores, indicating that it is currently the more affordable of the two stocks.
Summary
Ross Stores beats The TJX Companies on 9 of the 15 factors compared between the two stocks.