Reviewing Genesco Inc. (GCO)’s and Ross Stores Inc. (NASDAQ:ROST)’s results

Genesco Inc. (NYSE:GCO) and Ross Stores Inc. (NASDAQ:ROST) compete with each other in the Apparel Stores sector. We will analyze and contrast their risk, analyst recommendations, profitability, institutional ownership, dividends, earnings and valuation.

Earnings & Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Genesco Inc. 2.94B 0.30 68.63M 3.78 12.29
Ross Stores Inc. 14.98B 2.21 1.59B 4.04 23.18

In table 1 we can see Genesco Inc. and Ross Stores Inc.’s top-line revenue, earnings per share and valuation. Ross Stores Inc. is observed to has higher revenue and earnings than Genesco Inc. The company with a lower price-to-earnings ratio is currently more affordable of the two stocks. Genesco Inc. has been trading at a lower price-to-earnings ratio than Ross Stores Inc., which means that it is at the moment the more affordable of the two companies.

Profitability

Table 2 demonstrates the net margins, return on assets and return on equity of Genesco Inc. and Ross Stores Inc.

Net Margins Return on Equity Return on Assets
Genesco Inc. 2.33% 8.2% 5%
Ross Stores Inc. 10.61% 50.9% 26.7%

Risk & Volatility

Genesco Inc. is 27.00% less volatile than Standard and Poor’s 500 due to its 0.73 beta. Competitively, Ross Stores Inc. is 10.00% less volatile than Standard and Poor’s 500, because of the 0.9 beta.

Liquidity

2.3 and 0.5 are the respective Current Ratio and a Quick Ratio of Genesco Inc. Its rival Ross Stores Inc.’s Current and Quick Ratios are 1.6 and 0.7 respectively. Genesco Inc. has a better chance of clearing its pay short and long-term debts than Ross Stores Inc.

Dividends

Meanhile, Ross Stores Inc.’s yearly dividend is $0.93 per share and 1.03% dividend yield. Genesco Inc. does not pay a dividend.

Analyst Ratings

Genesco Inc. and Ross Stores Inc. Ratings and Recommendations are available on the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Genesco Inc. 0 1 0 2.00
Ross Stores Inc. 0 6 8 2.57

Genesco Inc. has a 18.25% upside potential and a consensus target price of $51. Competitively Ross Stores Inc. has a consensus target price of $97.57, with potential upside of 9.33%. The results provided earlier shows that Genesco Inc. appears more favorable than Ross Stores Inc., based on analyst view.

Institutional and Insider Ownership

Roughly 0% of Genesco Inc. shares are owned by institutional investors while 95.5% of Ross Stores Inc. are owned by institutional investors. Insiders owned 2.6% of Genesco Inc. shares. Comparatively, Ross Stores Inc. has 0.1% of it’s share owned by insiders.

Performance

In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Genesco Inc. -0.51% 2.9% 7.87% 0.3% 19.67% 4.94%
Ross Stores Inc. -0.28% 1.61% 8.3% -2.56% 20.08% 12.5%

For the past year Genesco Inc. has weaker performance than Ross Stores Inc.

Summary

On 15 of the 16 factors Ross Stores Inc. beats Genesco Inc.

Genesco Inc. retails and wholesales footwear, apparel, and accessories. The companyÂ’s Journeys Group segment offers footwear and accessories through the Journeys, Journeys Kidz, Shi by Journeys, Little Burgundy, and Underground by Journeys retail stores, as well as through e-commerce and catalogs for young men, women, and children. Its Schuh Group segment operates Schuh retail footwear stores that offer casual and athletic footwear for men and women, as well as sells footwear through e-commerce. The companyÂ’s Lids Sports Group segment operates headwear and accessory stores primarily under the Lids banner; Lids Locker Room and Lids Clubhouse stores, which sell licensed sports headwear, apparel, and accessories to sports fans; and Locker Room by Lids leased departments in Macy's department stores that sell headwear, apparel, accessories, and novelties from an assortment of college and professional teams, as well as sells headwear and accessories through e-commerce. Its Johnston & Murphy Group segment engages in retail, catalog, and e-commerce, as well as wholesale distribution of footwear, apparel, and accessories primarily for men. This segment also provides men's and women's footwear and leather accessories under the Trask brand through retailers and department stores, an e-commerce Website, and catalog. The companyÂ’s Licensed Brands segment markets casual footwear under the Dockers brand for men; and G.H. Bass trademark footwear and other brands. As of March 10, 2017, it operated approximately 2,775 retail stores and leased departments in the United States, Canada, the United Kingdom, the Republic of Ireland, and Germany. The companyÂ’s e-commerce Websites include journeys.com, journeyskidz.com, journeys.ca, shibyjourneys.com, schuh.co.uk, littleburgundyshoes.com, johnstonmurphy.com, lids.com, lids.ca, lidslockerroom.com, lidsclubhouse.com, neweracap.com, trask.com, and dockersshoes.com. Genesco Inc. was founded in 1924 and is headquartered in Nashville, Tennessee.

Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and ddÂ’s DISCOUNTS brand names in the United States. It primarily offers apparel, accessories, footwear, and home fashions. The companyÂ’s Ross Dress for Less stores sell its products at savings of 20% to 60% off department and specialty store regular prices primarily to middle income households; and ddÂ’s DISCOUNTS stores sell its products at savings of 20% to 70% off moderate department and discount store regular prices to customers from households with moderate income. As of October 9, 2017, it operated 1,412 Ross Dress for Less stores in 37 states, the District of Columbia, and Guam; and 205 dd's DISCOUNTS stores in 16 states. The company was founded in 1982 and is headquartered in Dublin, California.