TJX vs ROST

For growth investors, Ross Stores, Inc.

(ROST) is the stronger pick with 7. 7% revenue growth year-over-year, versus 7. 1% for The TJX Companies, Inc. (TJX). The TJX Companies, Inc. (TJX) offers the better valuation at 31. 9x trailing P/E (33. 2x forward), making it the more compelling value choice. Analysts rate The TJX Companies, Inc. (TJX) a "Buy" — based on 53 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, The TJX Companies, Inc.

(TJX) is the cheapest at 31. 9x versus Ross Stores, Inc. at 34. 6x. On forward P/E, The TJX Companies, Inc. is actually cheaper at 33. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: The TJX Companies, Inc. wins at 0. 25x versus Ross Stores, Inc. 's 0. 37x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, The TJX Companies, Inc.

(TJX) delivered a total return of +126. 0%, compared to +82. 8% for Ross Stores, Inc. (ROST). Over 10 years, the gap is even starker: TJX returned +331. 5% versus ROST's +319. 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), The TJX Companies, Inc.

(TJX) is the lower-risk stock at 0. 39β versus Ross Stores, Inc. 's 0. 89β — meaning ROST is approximately 127% more volatile than TJX relative to the S&P 500. On balance sheet safety, Ross Stores, Inc. (ROST) carries a lower debt/equity ratio of 80% versus 2% for The TJX Companies, 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 7. 1% for The TJX Companies, Inc. (TJX). On earnings-per-share growth, the picture is similar: The TJX Companies, Inc. grew EPS 14. 6% 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 9. 1% for The TJX Companies, 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 11. 9% for TJX. At the gross margin level — before operating expenses — TJX leads at 31. 0%, 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.

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, The TJX Companies, Inc. (TJX) is the more undervalued stock at a PEG of 0. 25x versus Ross Stores, Inc. 's 0. 37x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, The TJX Companies, Inc. (TJX) trades at 33. 2x forward P/E versus 35. 1x for Ross Stores, Inc. — 1. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TJX: 10. 6% to $172. 00.

All stocks in this comparison pay dividends.

The TJX Companies, Inc. (TJX) offers the highest yield at 1. 1%, versus 0. 7% for Ross Stores, Inc. (ROST).

For long-horizon retirement investors, The TJX Companies, Inc.

(TJX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 39), 1. 1% yield, +331. 5% 10Y return). Both have compounded well over 10 years (TJX: +331. 5%, ROST: +319. 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.

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.