Ross Stores, Inc. (ROST) vs The TJX Companies, Inc. (TJX)

Ross Stores, Inc. and The TJX Companies, Inc. are both Apparel Retail companies. The TJX Companies, Inc. is the larger, with a market value of $145.4B against $75.2B — 1.9× the size. The TJX Companies, Inc. trades at the lower P/E: 24.0× against 28.3×. Ross Stores, Inc. grew revenue faster over the last twelve months: 14.0% against 7.66%. Ross Stores, Inc. has the higher net margin (10.9% vs 9.73%) and the lower return on invested capital (60.6% vs 65.8%). Both pay a dividend; The TJX Companies, Inc. yields more (1.33% vs 0.93%). Across the 23 metrics below, The TJX Companies, Inc. leads on 14 and Ross Stores, Inc. on 9.

Valuation

Metric ROST TJX Apparel Retail median
P/E 28.35 24.04 12.56
P/S 3.06 2.30 0.35
P/B 11.12 13.48 1.57
Price to free cash flow 26.88 24.44 11.15
EV/EBITDA 18.35 14.85 7.42
EV/Sales 2.93 2.25 0.51
Earnings yield 3.53% 4.16% 5.76%
Free cash flow yield 3.72% 4.09% 4.34%

Profitability

Metric ROST TJX Apparel Retail median
Gross margin 29.67% 32.00% 41.90%
Operating margin 13.75% 12.69% 2.50%
Net margin 10.85% 9.73% 3.41%
Free cash flow margin 11.38% 9.42% 2.86%
Return on equity 42.63% 62.17% 7.71%
Return on assets 17.45% 17.33% 2.85%
Return on invested capital 60.64% 65.80% 6.41%

Growth

Metric ROST TJX Apparel Retail median
Revenue growth (TTM) 14.02% 7.66% 4.14%
EPS growth (last fiscal year) 4.59% 14.32% —
Revenue growth, 5-year CAGR 12.67% 13.44% 5.92%
Net income growth, 5-year CAGR 90.55% 127.58% 0.00%

Health

Metric ROST TJX Apparel Retail median
Debt to equity 0.15 0.27 0.01
Current ratio 1.61 1.15 1.54
Net debt to EBITDA (0.96) (0.39) (0.29)

Dividend

Metric ROST TJX Apparel Retail median
Dividend yield 0.93% 1.33% 2.94%
Payout ratio 0.27 0.36 0.00

Size

Metric ROST TJX Apparel Retail median
Market cap 75.15b 145.42b 358.41m

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