Genesco (NYSE:GCO) and The TJX Companies (NYSE:TJX) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Profitability
This table compares Genesco and The TJX Companies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Genesco | -6.06% | -2.50% | -0.75% |
The TJX Companies | 2.24% | 14.34% | 2.78% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for Genesco and The TJX Companies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Genesco | 0 | 1 | 3 | 0 | 2.75 |
The TJX Companies | 0 | 4 | 18 | 1 | 2.87 |
Genesco currently has a consensus price target of $35.50, indicating a potential downside of 21.01%. The TJX Companies has a consensus price target of $68.88, indicating a potential upside of 4.38%. Given The TJX Companies' stronger consensus rating and higher probable upside, analysts plainly believe The TJX Companies is more favorable than Genesco.
Valuation and Earnings
This table compares Genesco 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 |
---|
Genesco | $2.20 billion | 0.31 | $61.38 million | $4.58 | 9.81 |
The TJX Companies | $41.72 billion | 1.90 | $3.27 billion | $2.67 | 24.72 |
The TJX Companies has higher revenue and earnings than Genesco. Genesco is trading at a lower price-to-earnings ratio than The TJX Companies, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
92.8% of Genesco shares are owned by institutional investors. Comparatively, 88.8% of The TJX Companies shares are owned by institutional investors. 4.8% of Genesco shares are owned by insiders. Comparatively, 0.2% of The TJX Companies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
Genesco has a beta of 2.14, indicating that its stock price is 114% more volatile than the S&P 500. Comparatively, The TJX Companies has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.
Summary
The TJX Companies beats Genesco on 11 of the 15 factors compared between the two stocks.