Head-To-Head Comparison: Ross Stores (NASDAQ:ROST) and Birks Group (NYSE:BGI)

Birks Group (NYSE:BGI) and Ross Stores (NASDAQ:ROST) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Volatility & Risk

Birks Group has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500. Comparatively, Ross Stores has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Earnings and Valuation

This table compares Birks Group and Ross Stores”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Birks Group	$205.42 million	0.04	-$3.43 million	N/A	N/A
Ross Stores	$22.75 billion	3.55	$2.15 billion	$7.16	35.18

Ross Stores has higher revenue and earnings than Birks Group.

Analyst Ratings

This is a summary of current recommendations and price targets for Birks Group and Ross Stores, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Birks Group	0	0	0	0	0.00
Ross Stores	0	5	15	1	2.81

Ross Stores has a consensus target price of $233.18, indicating a potential downside of 7.42%. Given Ross Stores’ stronger consensus rating and higher probable upside, analysts clearly believe Ross Stores is more favorable than Birks Group.

Institutional and Insider Ownership

0.2% of Birks Group shares are owned by institutional investors. Comparatively, 86.9% of Ross Stores shares are owned by institutional investors. 78.8% of Birks Group shares are owned by company insiders. Comparatively, 2.1% of Ross Stores shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Birks Group and Ross Stores’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Birks Group	N/A	N/A	N/A
Ross Stores	9.74%	38.42%	15.18%

Summary

Ross Stores beats Birks Group on 12 of the 13 factors compared between the two stocks.

About Birks Group

Birks Group Inc. designs, develops, manufactures, and retails fine jewelry, timepieces, sterling and plated silverware, and gifts in the United States and Canada. The company operates through two segments, Retail and Other. It offers various merchandise, including designer jewelry, diamonds, gemstone and precious metal jewelry, rings, wedding bands, earrings, bracelets, necklaces, precious gemstones, gold jewelry, pearls, and giftware. It operates stores under the Maison Birks, Brinkhaus, Breitling, and Graff and Patek Philippe brands. It also engages in the retail and wholesale of fine jewelry collections through Mappin & Webb and Goldsmiths stores, as well as through e-commerce platforms; and gold exchange business. The company was formerly known as Birks & Mayors Inc. and changed its name to Birks Group Inc. in September 2013. Birks Group Inc. was founded in 1879 and is headquartered in Montreal, Canada.

About Ross Stores

Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd’s DISCOUNTS brand names in the United States. Its stores primarily offer apparel, accessories, footwear, and home fashions. The company’s Ross Dress for Less stores sell its products at department and specialty stores to middle income households; and dd’s DISCOUNTS stores sell its products at department and discount stores for households with moderate income. Ross Stores, Inc. was incorporated in 1957 and is headquartered in Dublin, California.