Marshalls vs Macy's Which Is More Reliable?

Marshalls and Macy's are two well-known retail companies, each with their own unique strengths and weaknesses. Marshalls, owned by TJX Companies, is known for its off-price model, offering discounted brand name merchandise at lower prices than traditional department stores like Macy's. Macy's, on the other hand, is a long-standing department store chain with a strong presence in the market. Investors looking to compare Marshalls vs Macy's stocks will need to consider factors such as consumer trends, management strategies, and overall market performance to make an informed decision.

Marshalls or Macy's?

When comparing Marshalls and Macy's, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Marshalls and Macy's.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Marshalls has a dividend yield of 2.45%, while Macy's has a dividend yield of 5.61%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Marshalls reports a 5-year dividend growth of 9.34% year and a payout ratio of 146.30%. On the other hand, Macy's reports a 5-year dividend growth of -15.21% year and a payout ratio of 101.63%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Marshalls P/E ratio at 40.11 and Macy's's P/E ratio at 23.15. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Marshalls P/B ratio is 1.31 while Macy's's P/B ratio is 0.99.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Marshalls has seen a 5-year revenue growth of 0.07%, while Macy's's is 0.04%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Marshalls's ROE at 3.32% and Macy's's ROE at 4.39%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £324.14 for Marshalls and $15.33 for Macy's. Over the past year, Marshalls's prices ranged from £210.60 to £366.00, with a yearly change of 73.79%. Macy's's prices fluctuated between $10.59 and $22.10, with a yearly change of 108.69%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.