ROST vs. AEO, URBN, JWN, BKE, LE, PLCE, TJX, CPNG, KR, and AZO
Should you be buying Ross Stores stock or one of its competitors? The main competitors of Ross Stores include American Eagle Outfitters (AEO), Urban Outfitters (URBN), Nordstrom (JWN), Buckle (BKE), Lands' End (LE), Children's Place (PLCE), TJX Companies (TJX), Coupang (CPNG), Kroger (KR), and AutoZone (AZO). These companies are all part of the "retail/wholesale" sector.
American Eagle Outfitters (NYSE:AEO) and Ross Stores (NASDAQ:ROST) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, media sentiment, institutional ownership, community ranking and risk.
American Eagle Outfitters pays an annual dividend of $0.50 per share and has a dividend yield of 2.1%. Ross Stores pays an annual dividend of $1.47 per share and has a dividend yield of 1.1%. American Eagle Outfitters pays out 58.1% of its earnings in the form of a dividend. Ross Stores pays out 26.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. American Eagle Outfitters has increased its dividend for 1 consecutive years and Ross Stores has increased its dividend for 3 consecutive years.
American Eagle Outfitters currently has a consensus price target of $23.00, indicating a potential downside of 2.25%. Ross Stores has a consensus price target of $155.11, indicating a potential upside of 17.21%. Given American Eagle Outfitters' stronger consensus rating and higher probable upside, analysts clearly believe Ross Stores is more favorable than American Eagle Outfitters.
In the previous week, Ross Stores had 5 more articles in the media than American Eagle Outfitters. MarketBeat recorded 11 mentions for Ross Stores and 6 mentions for American Eagle Outfitters. American Eagle Outfitters' average media sentiment score of 0.99 beat Ross Stores' score of 0.46 indicating that Ross Stores is being referred to more favorably in the news media.
American Eagle Outfitters has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, Ross Stores has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.
Ross Stores has higher revenue and earnings than American Eagle Outfitters. Ross Stores is trading at a lower price-to-earnings ratio than American Eagle Outfitters, indicating that it is currently the more affordable of the two stocks.
Ross Stores has a net margin of 9.20% compared to Ross Stores' net margin of 3.23%. American Eagle Outfitters' return on equity of 41.15% beat Ross Stores' return on equity.
97.3% of American Eagle Outfitters shares are owned by institutional investors. Comparatively, 86.9% of Ross Stores shares are owned by institutional investors. 7.5% of American Eagle Outfitters shares are owned by company insiders. Comparatively, 2.1% of Ross Stores shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
American Eagle Outfitters received 187 more outperform votes than Ross Stores when rated by MarketBeat users. Likewise, 64.36% of users gave American Eagle Outfitters an outperform vote while only 64.08% of users gave Ross Stores an outperform vote.
Summary
Ross Stores beats American Eagle Outfitters on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ROST and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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