ROST vs M

For growth investors, Ross Stores, Inc.

(ROST) is the stronger pick with 7. 7% revenue growth year-over-year, versus -1. 7% for Macy's, Inc. (M). Macy's, Inc. (M) offers the better valuation at 8. 3x trailing P/E (8. 8x forward), making it the more compelling value choice. Analysts rate Ross Stores, Inc. (ROST) a "Buy" — based on 47 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.

On trailing P/E, Macy's, Inc.

(M) is the cheapest at 8. 3x versus Ross Stores, Inc. at 34. 0x. On forward P/E, Macy's, Inc. is actually cheaper at 8. 8x.

Over the past 5 years, Ross Stores, Inc.

(ROST) delivered a total return of +74. 1%, compared to +26. 9% for Macy's, Inc. (M). Over 10 years, the gap is even starker: ROST returned +304. 0% versus M's -24. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Ross Stores, Inc.

(ROST) is the lower-risk stock at 0. 89β versus Macy's, Inc. 's 1. 42β — meaning M is approximately 59% more volatile than ROST relative to the S&P 500. On balance sheet safety, Ross Stores, Inc. (ROST) carries a lower debt/equity ratio of 80% versus 107% for Macy's, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Ross Stores, Inc.

(ROST) is pulling ahead at 7. 7% versus -1. 7% for Macy's, Inc. (M). On earnings-per-share growth, the picture is similar: Macy's, Inc. grew EPS 12. 1% year-over-year, compared to 4. 6% for Ross Stores, Inc.. Over a 3-year CAGR, ROST leads at 6. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Ross Stores, Inc.

(ROST) is the more profitable company, earning 9. 4% net margin versus 2. 8% for Macy's, Inc. — meaning it keeps 9. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ROST leads at 11. 9% versus 4. 6% for M. At the gross margin level — before operating expenses — M leads at 36. 5%, 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.

On forward earnings alone, Macy's, Inc.

(M) trades at 8. 8x forward P/E versus 34. 4x for Ross Stores, Inc. — 25. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for M: -0. 2% to $19. 20.

All stocks in this comparison pay dividends.

Macy's, Inc. (M) offers the highest yield at 3. 7%, versus 0. 7% for Ross Stores, Inc. (ROST).

For long-horizon retirement investors, Ross Stores, Inc.

(ROST) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 89), 0. 7% yield, +304. 0% 10Y return). Both have compounded well over 10 years (ROST: +304. 0%, M: -24. 5%), 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.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: ROST is a mid-cap quality compounder stock; M is a small-cap deep-value stock. 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.