Financial Survey: TJX Companies (TJX) & The Competition

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

Risk & Volatility

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

Institutional & Insider Ownership

91.0% of TJX Companies shares are held by institutional investors. Comparatively, 63.8% of shares of all “Family clothing stores” companies are held by institutional investors. 0.2% of TJX Companies shares are held by company insiders. Comparatively, 14.3% of shares of all “Family clothing stores” companies are held by company 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.

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 raised 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 20.11
TJX Companies Competitors $8.05 billion $540.81 million 45.15

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.

Analyst Recommendations

This is a breakdown of recent ratings 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 1817 44 2.38

TJX Companies currently has a consensus price target of $87.58, indicating a potential upside of 7.78%. As a group, “Family clothing stores” companies have a potential downside of 1.49%. Given TJX Companies’ stronger consensus rating and higher probable upside, equities research analysts clearly believe TJX Companies is more favorable than its competitors.

Summary

TJX Companies beats its competitors 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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