WSM vs TGT

For growth investors, Williams-Sonoma, Inc.

(WSM) is the stronger pick with 1. 2% revenue growth year-over-year, versus -1. 7% for Target Corporation (TGT). Target Corporation (TGT) offers the better valuation at 16. 0x trailing P/E (15. 7x forward), making it the more compelling value choice. Analysts rate Williams-Sonoma, Inc. (WSM) a "Hold" — based on 56 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, Target Corporation (TGT) is the cheapest at 16.

0x versus Williams-Sonoma, Inc. at 21. 1x. On forward P/E, Target Corporation is actually cheaper at 15. 7x.

Over the past 5 years, Williams-Sonoma, Inc.

(WSM) delivered a total return of +114. 6%, compared to -29. 1% for Target Corporation (TGT). Over 10 years, the gap is even starker: WSM returned +599. 0% versus TGT's +99. 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), Target Corporation (TGT) is the lower-risk stock at 0.

95β versus Williams-Sonoma, Inc. 's 1. 49β — meaning WSM is approximately 57% more volatile than TGT relative to the S&P 500. On balance sheet safety, Target Corporation (TGT) carries a lower debt/equity ratio of 35% versus 70% for Williams-Sonoma, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Williams-Sonoma, Inc.

(WSM) is pulling ahead at 1. 2% versus -1. 7% for Target Corporation (TGT). On earnings-per-share growth, the picture is similar: Williams-Sonoma, Inc. grew EPS 0. 6% year-over-year, compared to -8. 2% for Target Corporation. Over a 3-year CAGR, TGT leads at -1. 3% 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.

Williams-Sonoma, Inc.

(WSM) is the more profitable company, earning 13. 9% net margin versus 3. 5% for Target Corporation — meaning it keeps 13. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WSM leads at 18. 1% versus 4. 9% for TGT. At the gross margin level — before operating expenses — WSM leads at 46. 2%, 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, Target Corporation (TGT) trades at 15.

7x forward P/E versus 21. 4x for Williams-Sonoma, Inc. — 5. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WSM: 7. 4% to $200. 25.

All stocks in this comparison pay dividends.

Target Corporation (TGT) offers the highest yield at 3. 5%, versus 1. 4% for Williams-Sonoma, Inc. (WSM).

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.

95), 3. 5% yield). Both have compounded well over 10 years (TGT: +99. 5%, WSM: +599. 0%), 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.

These companies operate in different sectors (WSM (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: WSM is a mid-cap quality compounder stock; TGT is a mid-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.