Financial Analysis: TJX Companies (TJX) versus Its Competitors

TJX Companies (NYSE: TJX) is one of 14 public companies in the “Family clothing stores” industry, but how does it compare to its rivals? We will compare TJX Companies to similar businesses based on the strength of its institutional ownership, risk, earnings, dividends, profitability, valuation and analyst recommendations.

Analyst Recommendations

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This is a breakdown of current recommendations and price targets for TJX Companies and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TJX Companies 0 4 15 0 2.79
TJX Companies Competitors 363 1819 1815 44 2.38

TJX Companies currently has a consensus price target of $87.26, suggesting a potential upside of 4.58%. As a group, “Family clothing stores” companies have a potential downside of 2.06%. Given TJX Companies’ stronger consensus rating and higher probable upside, analysts plainly believe TJX Companies is more favorable than its rivals.

Valuation & Earnings

This table compares TJX Companies and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
TJX Companies $35.86 billion $2.61 billion 20.65
TJX Companies Competitors $8.05 billion $540.81 million 45.52

TJX Companies has higher revenue and earnings than its rivals. TJX Companies is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares TJX Companies and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TJX Companies 7.27% 55.23% 19.45%
TJX Companies Competitors 4.10% 17.57% 7.85%

Institutional and Insider Ownership

91.0% of TJX Companies shares are owned by institutional investors. Comparatively, 63.7% of shares of all “Family clothing stores” companies are owned by institutional investors. 0.2% of TJX Companies shares are owned by company insiders. Comparatively, 14.3% of shares of all “Family clothing stores” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

TJX Companies pays an annual dividend of $1.25 per share and has a dividend yield of 1.5%. TJX Companies pays out 30.9% of its earnings in the form of a dividend. As a group, “Family clothing stores” companies pay a dividend yield of 1.9% and pay out 37.3% of their earnings in the form of a dividend. TJX Companies has increased its dividend for 21 consecutive years.

Risk & Volatility

TJX Companies has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, TJX Companies’ rivals have a beta of 0.64, indicating that their average stock price is 36% less volatile than the S&P 500.

Summary

TJX Companies beats its rivals on 11 of the 15 factors compared.

About TJX Companies

The TJX Companies, Inc. operates as an off-price apparel and home fashions retailer in the United States and internationally. It operates through four segments: Marmaxx, HomeGoods, TJX Canada, and TJX International. The company sells family apparel, including footwear and accessories; home fashions, such as home basics, accent furniture, lamps, rugs, wall décor, decorative accessories, and giftware; seasonal items; jewelry; and other merchandise. It operates stores under the T.J. Maxx, Marshalls, HomeGoods, Winners, HomeSense, T.K. Maxx, and Sierra Trading Post names, as well as operates e-commerce sites tjmaxx.com, tkmaxx.com, and sierratradingpost.com. As of January 28, 2017, the company operated a total of 3,812 stores in 9 countries, including the United States, Canada, the United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, and Australia, as well as through three e-commerce sites. The TJX Companies, Inc. was founded in 1956 and is based in Framingham, Massachusetts.

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