Ross Stores vs Marshalls Which Is Stronger?

Both Ross Stores and Marshalls are popular off-price retail chains known for offering discounted brand-name clothing, shoes, accessories, and home goods. Investors often compare the performance of their stocks, as both companies operate in the same sector and target a similar customer base. While Ross Stores has a larger market capitalization and more locations nationwide, Marshalls has seen steady growth in recent years. Understanding the key differences in their financials and market strategies can help investors make informed decisions on where to invest.

Ross Stores or Marshalls?

When comparing Ross Stores and Marshalls, 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 Ross Stores and Marshalls.

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. Ross Stores has a dividend yield of 0.96%, while Marshalls has a dividend yield of 2.68%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Ross Stores reports a 5-year dividend growth of 8.29% year and a payout ratio of 22.72%. On the other hand, Marshalls reports a 5-year dividend growth of 9.34% year and a payout ratio of 146.30%.

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 Ross Stores P/E ratio at 24.05 and Marshalls's P/E ratio at 36.28. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Ross Stores P/B ratio is 9.66 while Marshalls's P/B ratio is 1.18.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Ross Stores has seen a 5-year revenue growth of 0.50%, while Marshalls's is 0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ross Stores's ROE at 41.83% and Marshalls's ROE at 3.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $153.14 for Ross Stores and £308.50 for Marshalls. Over the past year, Ross Stores's prices ranged from $127.53 to $163.60, with a yearly change of 28.28%. Marshalls's prices fluctuated between £245.80 and £366.00, with a yearly change of 48.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.