Comparing TJX Companies (TJX) and Its Rivals

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

Volatility and Risk

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TJX Companies has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, TJX Companies’ competitors have a beta of 0.63, suggesting that their average share price is 37% less volatile than the S&P 500.

Profitability

This table compares TJX Companies and its competitors’ 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%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for TJX Companies and its competitors, as provided 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 1820 1818 44 2.38

TJX Companies currently has a consensus target price of $87.58, indicating a potential upside of 5.85%. As a group, “Family clothing stores” companies have a potential downside of 1.84%. Given TJX Companies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe TJX Companies is more favorable than its competitors.

Insider and Institutional Ownership

90.8% of TJX Companies shares are owned by institutional investors. Comparatively, 63.6% of shares of all “Family clothing stores” companies are owned by institutional investors. 0.2% of TJX Companies shares are owned by insiders. Comparatively, 14.3% of shares of all “Family clothing stores” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company 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 2.0% and pay out 37.7% of their earnings in the form of a dividend. TJX Companies has increased its dividend for 21 consecutive years.

Earnings and Valuation

This table compares TJX Companies and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
TJX Companies $35.86 billion $2.61 billion 20.48
TJX Companies Competitors $8.05 billion $540.81 million 44.85

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

Summary

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

TJX Companies Company Profile

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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