Comprehensive Stock Comparison
Compare Five Below, Inc. (FIVE) vs Target Corporation (TGT) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | FIVE | 8.9% revenue growth vs TGT's -0.8% |
| Value | TGT | Lower P/E (15.6x vs 35.3x), PEG 2.28 vs 4.38 |
| Quality / Margins | FIVE | 7.0% net margin vs TGT's 3.8% |
| Stability / Safety | TGT | Beta 0.98 vs FIVE's 1.78 |
| Dividends | TGT | 3.9% yield; 21-year raise streak; FIVE pays no meaningful dividend |
| Momentum (1Y) | FIVE | +157.3% vs TGT's -4.8% |
| Efficiency (ROA) | TGT | 6.7% ROA vs FIVE's 6.4%, ROIC 13.4% vs 7.4% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Five Below is a specialty value retailer targeting teens and pre-teens with trendy merchandise priced at $5 or less. It generates revenue primarily from retail store sales — over 1,400 locations across the U.S. — with a broad product mix spanning accessories, tech gadgets, games, and seasonal items. The company's competitive advantage lies in its disciplined price-point focus and treasure-hunt shopping experience that drives high foot traffic and repeat visits.
Target is a large-format general merchandise retailer offering a curated assortment of essentials, apparel, home goods, and groceries at value prices. It generates revenue primarily through in-store sales (~95%) and digital channels (~5%), with additional income from credit card partnerships and in-store services like pharmacies and food courts. The company's competitive advantage lies in its "cheap chic" brand positioning—offering stylish private-label goods at affordable prices—and its efficient omnichannel fulfillment network that integrates stores as local distribution hubs.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
TGT leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). FIVE leads in 2 (Financial Metrics, Total Returns). 1 tied.
Financial Metrics (TTM)
TGT is the larger business by revenue, generating $105.4B annually — 23.8x FIVE's $4.4B. Profitability is closely matched — net margins range from 7.0% (FIVE) to 3.8% (TGT). On growth, FIVE holds the edge at +23.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | FIVEFive Below, Inc. | TGTTarget Corporation |
|---|---|---|
| RevenueTrailing 12 months | $4.4B | $105.4B |
| EBITDAEarnings before interest/tax | $582M | $8.2B |
| Net IncomeAfter-tax profit | $308M | $4.0B |
| Free Cash FlowCash after capex | $323M | $5.5B |
| Gross MarginGross profit ÷ Revenue | +33.4% | +25.5% |
| Operating MarginEBIT ÷ Revenue | +8.9% | +4.8% |
| Net MarginNet income ÷ Revenue | +7.0% | +3.8% |
| FCF MarginFCF ÷ Revenue | +7.3% | +5.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +23.1% | -1.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +21.0% | +13.5% |
Valuation Metrics
At 12.8x trailing earnings, TGT trades at a 74% valuation discount to FIVE's 48.6x P/E. Adjusting for growth (PEG ratio), TGT offers better value at 1.87x vs FIVE's 6.02x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | FIVEFive Below, Inc. | TGTTarget Corporation |
|---|---|---|
| Market CapShares × price | $12.3B | $51.8B |
| Enterprise ValueMkt cap + debt − cash | $14.0B | $70.8B |
| Trailing P/EPrice ÷ TTM EPS | 48.59x | 12.84x |
| Forward P/EPrice ÷ next-FY EPS est. | 35.34x | 15.61x |
| PEG RatioP/E ÷ EPS growth rate | 6.02x | 1.87x |
| EV / EBITDAEnterprise value multiple | 28.46x | 8.22x |
| Price / SalesMarket cap ÷ Revenue | 3.18x | 0.49x |
| Price / BookPrice ÷ Book value/share | 6.82x | 3.58x |
| Price / FCFMarket cap ÷ FCF | 115.60x | 11.58x |
Profitability & Efficiency
TGT delivers a 26.1% return on equity — every $100 of shareholder capital generates $26 in annual profit, vs $16 for FIVE. FIVE carries lower financial leverage with a 1.10x debt-to-equity ratio, signaling a more conservative balance sheet compared to TGT's 1.36x. On the Piotroski fundamental quality scale (0–9), TGT scores 7/9 vs FIVE's 5/9, reflecting strong financial health.
| Metric | FIVEFive Below, Inc. | TGTTarget Corporation |
|---|---|---|
| ROE (TTM)Return on equity | +15.8% | +26.1% |
| ROA (TTM)Return on assets | +6.4% | +6.7% |
| ROICReturn on invested capital | +7.4% | +13.4% |
| ROCEReturn on capital employed | +9.6% | +15.4% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 7 |
| Debt / EquityFinancial leverage | 1.10x | 1.36x |
| Net DebtTotal debt minus cash | $1.6B | $19.0B |
| Cash & Equiv.Liquid assets | $332M | $869M |
| Total DebtShort + long-term debt | $2.0B | $19.9B |
| Interest CoverageEBIT ÷ Interest expense | — | 13.06x |
Total Returns (with DRIP)
A $10,000 investment in FIVE five years ago would be worth $11,517 today (with dividends reinvested), compared to $7,238 for TGT. Over the past 12 months, FIVE leads with a +157.3% total return vs TGT's -4.8%. The 3-year compound annual growth rate (CAGR) favors FIVE at 3.0% vs TGT's -9.0% — a key indicator of consistent wealth creation.
| Metric | FIVEFive Below, Inc. | TGTTarget Corporation |
|---|---|---|
| YTD ReturnYear-to-date | +15.5% | +14.3% |
| 1-Year ReturnPast 12 months | +157.3% | -4.8% |
| 3-Year ReturnCumulative with dividends | +9.4% | -24.5% |
| 5-Year ReturnCumulative with dividends | +15.2% | -27.6% |
| 10-Year ReturnCumulative with dividends | +482.9% | +87.9% |
| CAGR (3Y)Annualised 3-year return | +3.0% | -9.0% |
Risk & Volatility
TGT is the less volatile stock with a 0.98 beta — it tends to amplify market swings less than FIVE's 1.78 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. FIVE currently trades 97.6% from its 52-week high vs TGT's 89.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | FIVEFive Below, Inc. | TGTTarget Corporation |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.78x | 0.98x |
| 52-Week HighHighest price in past year | $229.08 | $127.06 |
| 52-Week LowLowest price in past year | $52.38 | $83.44 |
| % of 52W HighCurrent price vs 52-week peak | +97.6% | +89.6% |
| RSI (14)Momentum oscillator 0–100 | 74.3 | 56.6 |
| Avg Volume (50D)Average daily shares traded | 869K | 5.5M |
Analyst Outlook
Wall Street rates FIVE as "Buy" and TGT as "Hold". Consensus price targets imply -5.1% upside for FIVE (target: $212) vs -9.6% for TGT (target: $103). TGT is the only dividend payer here at 3.89% yield — a key consideration for income-focused portfolios.
| Metric | FIVEFive Below, Inc. | TGTTarget Corporation |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $212.19 | $102.87 |
| # AnalystsCovering analysts | 49 | 58 |
| Dividend YieldAnnual dividend ÷ price | — | +3.9% |
| Dividend StreakConsecutive years of raises | 0 | 21 |
| Dividend / ShareAnnual DPS | — | $4.43 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.4% | +1.9% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Five Below, Inc. (FIVE) | 100 | 201.67 | +101.7% |
| Target Corporation (TGT) | 100 | 100.43 | +0.4% |
Five Below, Inc. (FIVE) returned +15% over 5 years vs Target Corporation (TGT)'s -28%. A $10,000 investment in FIVE 5 years ago would be worth $11,517 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Five Below, Inc. (FIVE) | $832M | $3.9B | +366.0% |
| Target Corporation (TGT) | $73.8B | $106.6B | +44.4% |
Five Below, Inc.'s revenue grew from $832M (2015) to $3.9B (2024) — a 18.6% CAGR. Target Corporation's revenue grew from $73.8B (2015) to $106.6B (2024) — a 4.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Five Below, Inc. (FIVE) | 6.9% | 6.5% | -5.6% |
| Target Corporation (TGT) | 4.6% | 3.8% | -15.8% |
Five Below, Inc.'s net margin went from 7% (2015) to 7% (2024). Target Corporation's net margin went from 5% (2015) to 4% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Five Below, Inc. (FIVE) | 36 | 22.8 | -36.7% |
| Target Corporation (TGT) | 12.3 | 15.3 | +24.4% |
Five Below, Inc. has traded in a 23x–80x P/E range over 8 years; current trailing P/E is ~49x. Target Corporation has traded in a 12x–25x P/E range over 8 years; current trailing P/E is ~13x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Five Below, Inc. (FIVE) | 1.05 | 4.6 | +338.1% |
| Target Corporation (TGT) | 5.31 | 8.86 | +66.9% |
Five Below, Inc.'s EPS grew from $1.05 (2015) to $4.60 (2024) — a 18% CAGR. Target Corporation's EPS grew from $5.31 (2015) to $8.86 (2024) — a 6% CAGR.
Chart 6Free Cash Flow — 5 Years
Five Below, Inc. generated $107M FCF in 2024 (+168% vs 2021). Target Corporation generated $4B FCF in 2024 (-12% vs 2021).
FIVE vs TGT: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is FIVE or TGT a better buy right now?
Target Corporation (TGT) offers the better valuation at 12.8x trailing P/E (15.6x forward), making it the more compelling value choice. Analysts rate Five Below, Inc. (FIVE) a "Buy" — based on 49 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — FIVE or TGT?
On trailing P/E, Target Corporation (TGT) is the cheapest at 12.8x versus Five Below, Inc. at 48.6x. On forward P/E, Target Corporation is actually cheaper at 15.6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Target Corporation wins at 2.28x versus Five Below, Inc.'s 4.38x.
03Which is the better long-term investment — FIVE or TGT?
Over the past 5 years, Five Below, Inc. (FIVE) delivered a total return of +15.2%, compared to -27.6% for Target Corporation (TGT). A $10,000 investment in FIVE five years ago would be worth approximately $12K today (assuming dividends reinvested). Over 10 years, the gap is even starker: FIVE returned +482.9% versus TGT's +87.9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — FIVE or TGT?
By beta (market sensitivity over 5 years), Target Corporation (TGT) is the lower-risk stock at 0.98β versus Five Below, Inc.'s 1.78β — meaning FIVE is approximately 81% more volatile than TGT relative to the S&P 500. On balance sheet safety, Five Below, Inc. (FIVE) carries a lower debt/equity ratio of 110% versus 136% for Target Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — FIVE or TGT?
Five Below, Inc. (FIVE) is the more profitable company, earning 6.5% net margin versus 3.8% for Target Corporation — meaning it keeps 6.5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FIVE leads at 8.4% versus 5.3% for TGT. At the gross margin level — before operating expenses — FIVE leads at 34.9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is FIVE or TGT more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Target Corporation (TGT) is the more undervalued stock at a PEG of 2.28x versus Five Below, Inc.'s 4.38x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Target Corporation (TGT) trades at 15.6x forward P/E versus 35.3x for Five Below, Inc. — 19.7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FIVE: -5.1% to $212.19.
07Which pays a better dividend — FIVE or TGT?
In this comparison, TGT (3.9% yield) pays a dividend. FIVE does not pay a meaningful dividend and should not be held primarily for income.
08Is FIVE or TGT better for a retirement portfolio?
For long-horizon retirement investors, Target Corporation (TGT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.98), 3.9% yield). Five Below, Inc. (FIVE) carries a higher beta of 1.78 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TGT: +87.9%, FIVE: +482.9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between FIVE and TGT?
These companies operate in different sectors (FIVE (Consumer Cyclical) and TGT (Consumer Defensive)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced. In terms of investment character: FIVE is a mid-cap quality compounder stock; TGT is a mid-cap deep-value stock. TGT pays a dividend while FIVE does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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