Ross Stores, Inc. (ROST) vs Victoria's Secret & Co. (VSXY)

Ross Stores, Inc. and Victoria's Secret & Co. are both Apparel Retail companies. Ross Stores, Inc. is the larger, with a market value of $75.2B against $6.7B — 11.2× the size. Victoria's Secret & Co. trades at the lower P/E: 18.2× against 28.3×. Ross Stores, Inc. grew revenue faster over the last twelve months: 14.0% against 10.3%. Ross Stores, Inc. has the higher net margin (10.9% vs 5.47%) and the higher return on invested capital (60.6% vs 22.6%). Across the 22 metrics below, Ross Stores, Inc. leads on 12 and Victoria's Secret & Co. on 10.

Valuation

Metric ROST VSXY Apparel Retail median
P/E 28.35 18.17 12.56
P/S 3.06 0.96 0.35
P/B 11.12 6.31 1.57
Price to free cash flow 26.88 11.97 11.15
EV/EBITDA 18.35 9.31 7.42
EV/Sales 2.93 1.03 0.51
Earnings yield 3.53% 5.50% 5.76%
Free cash flow yield 3.72% 8.35% 4.34%

Profitability

Metric ROST VSXY Apparel Retail median
Gross margin 29.67% 39.57% 41.90%
Operating margin 13.75% 7.86% 2.50%
Net margin 10.85% 5.47% 3.41%
Free cash flow margin 11.38% 8.02% 2.86%
Return on equity 42.63% 42.93% 7.71%
Return on assets 17.45% 7.63% 2.85%
Return on invested capital 60.64% 22.56% 6.41%

Growth

Metric ROST VSXY Apparel Retail median
Revenue growth (TTM) 14.02% 10.31% 4.14%
EPS growth (last fiscal year) 4.59% (5.85%) —
Revenue growth, 5-year CAGR 12.67% 3.90% 5.92%
Net income growth, 5-year CAGR 90.55% 0.00% 0.00%

Health

Metric ROST VSXY Apparel Retail median
Debt to equity 0.15 0.93 0.01
Current ratio 1.61 1.36 1.54
Net debt to EBITDA (0.96) 0.90 (0.29)

Dividend

Metric ROST VSXY Apparel Retail median
Dividend yield 0.93% — 2.94%
Payout ratio 0.27 0.00 0.00

Size

Metric ROST VSXY Apparel Retail median
Market cap 75.15b 6.69b 358.41m

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