Contrasting TJX Companies (TJX) and Buckle (BKE)

TJX Companies (NYSE: TJX) and Buckle (NYSE:BKE) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.

Valuation and Earnings

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This table compares TJX Companies and Buckle’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TJX Companies $35.86 billion 1.47 $2.61 billion $4.04 20.65
Buckle $913.38 million 1.21 $89.70 million $1.85 12.19

TJX Companies has higher revenue and earnings than Buckle. Buckle is trading at a lower price-to-earnings ratio than TJX Companies, indicating that it is currently the more affordable of the two stocks.

Dividends

TJX Companies pays an annual dividend of $1.25 per share and has a dividend yield of 1.5%. Buckle pays an annual dividend of $1.00 per share and has a dividend yield of 4.4%. TJX Companies pays out 30.9% of its earnings in the form of a dividend. Buckle pays out 54.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. TJX Companies has increased its dividend for 21 consecutive years.

Risk and Volatility

TJX Companies has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Buckle has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for TJX Companies and Buckle, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TJX Companies 0 4 15 0 2.79
Buckle 1 0 0 0 1.00

TJX Companies currently has a consensus price target of $87.26, indicating a potential upside of 4.58%. Buckle has a consensus price target of $13.00, indicating a potential downside of 42.35%. Given TJX Companies’ stronger consensus rating and higher possible upside, equities analysts plainly believe TJX Companies is more favorable than Buckle.

Insider and Institutional Ownership

91.0% of TJX Companies shares are held by institutional investors. Comparatively, 64.9% of Buckle shares are held by institutional investors. 0.2% of TJX Companies shares are held by insiders. Comparatively, 41.7% of Buckle shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares TJX Companies and Buckle’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TJX Companies 7.27% 55.23% 19.45%
Buckle 9.82% 20.98% 15.71%

Summary

TJX Companies beats Buckle on 13 of the 17 factors compared between the two stocks.

TJX Companies Company Profile

The TJX Companies, Inc. operates as an off-price apparel and home fashions retailer in the United States and internationally. It operates through four segments: Marmaxx, HomeGoods, TJX Canada, and TJX International. The company sells family apparel, including footwear and accessories; home fashions, such as home basics, accent furniture, lamps, rugs, wall d├ęcor, decorative accessories, and giftware; seasonal items; jewelry; and other merchandise. It operates stores under the T.J. Maxx, Marshalls, HomeGoods, Winners, HomeSense, T.K. Maxx, and Sierra Trading Post names, as well as operates e-commerce sites tjmaxx.com, tkmaxx.com, and sierratradingpost.com. As of January 28, 2017, the company operated a total of 3,812 stores in 9 countries, including the United States, Canada, the United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, and Australia, as well as through three e-commerce sites. The TJX Companies, Inc. was founded in 1956 and is based in Framingham, Massachusetts.

Buckle Company Profile

The Buckle, Inc. operates as a retailer of casual apparel, footwear, and accessories for young men and women in the United States. The company markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear. It operates stores under the Buckle and The Buckle names. The company also sells its products through its Website, buckle.com. As of January 18, 2016, it operated 467 retail stores in 44 states. The company was formerly known as Mills Clothing, Inc. and changed its name to The Buckle, Inc. in April 1991. The Buckle, Inc. was founded in 1948 and is headquartered in Kearney, Nebraska.

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