Tuesday Morning Corp. (TUES) & TJX Companies, Inc. (The) (NYSE:TJX) Critical Review

TJX Companies, Inc. (The) (NYSE: TJX) and Tuesday Morning Corp. (NASDAQ:TUES) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitabiliy, valuation, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and price targets for TJX Companies, Inc. (The) and Tuesday Morning Corp., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TJX Companies, Inc. (The)	0	3	12	1	2.88
Tuesday Morning Corp.	0	3	0	0	2.00

TJX Companies, Inc. (The) currently has a consensus target price of $84.63, indicating a potential upside of 21.59%. Tuesday Morning Corp. has a consensus target price of $2.55, indicating a potential upside of 39.73%. Given Tuesday Morning Corp.’s higher probable upside, analysts clearly believe Tuesday Morning Corp. is more favorable than TJX Companies, Inc. (The).

Volatility & Risk

TJX Companies, Inc. (The) has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Tuesday Morning Corp. has a beta of 2.13, suggesting that its stock price is 113% more volatile than the S&P 500.

Earnings & Valuation

This table compares TJX Companies, Inc. (The) and Tuesday Morning Corp.’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
TJX Companies, Inc. (The)	$33.43 billion	1.34	$4.53 billion	$3.52	19.77
Tuesday Morning Corp.	$965.84 million	0.08	-$1.17 million	($0.44)	-4.15

TJX Companies, Inc. (The) has higher revenue and earnings than Tuesday Morning Corp.. Tuesday Morning Corp. is trading at a lower price-to-earnings ratio than TJX Companies, Inc. (The), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TJX Companies, Inc. (The) and Tuesday Morning Corp.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TJX Companies, Inc. (The)	6.96%	53.34%	18.97%
Tuesday Morning Corp.	-1.97%	-8.56%	-4.85%

Insider & Institutional Ownership

89.1% of TJX Companies, Inc. (The) shares are held by institutional investors. Comparatively, 91.7% of Tuesday Morning Corp. shares are held by institutional investors. 0.2% of TJX Companies, Inc. (The) shares are held by company insiders. Comparatively, 4.4% of Tuesday Morning Corp. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

TJX Companies, Inc. (The) pays an annual dividend of $1.25 per share and has a dividend yield of 1.8%. Tuesday Morning Corp. does not pay a dividend. TJX Companies, Inc. (The) pays out 35.5% of its earnings in the form of a dividend. TJX Companies, Inc. (The) has increased its dividend for 20 consecutive years.

Summary

TJX Companies, Inc. (The) beats Tuesday Morning Corp. on 12 of the 17 factors compared between the two stocks.

About TJX Companies, Inc. (The)

The TJX Companies, Inc. (TJX) is an off-price apparel and home fashions retailer in the United States and across the world. The Company operates through four segments: Marmaxx, HomeGoods, TJX Canada and TJX International. T.J. Maxx and Marshalls chains in the United States were collectively the off-price retailer in the United States with a total of 2,221 stores, as of January 28, 2017. The HomeGoods chain was an off-price retailer of home fashions in the United States with 579 stores. The TJX Canada segment operates the Winners, HomeSense and Marshalls chains in Canada. Winners is the off-price apparel and home fashions retailer in Canada. HomeSense offers home fashions off-price concept in Canada. The TJX International segment operates the T.K. Maxx and HomeSense chains in Europe. With 503 stores, T.K. Maxx operated in the United Kingdom, Ireland, Germany, Poland, Austria and the Netherlands.

About Tuesday Morning Corp.

Tuesday Morning Corporation is an off-price retailer. The Company specializes in selling discounted, upscale decorative home accessories, housewares, seasonal goods and famous-maker gifts. The Company operated 751 stores in 40 states in the United States, as of June 30, 2016. The Company offers products in a range of categories, such as home decor, furniture, bed and bath, kitchen, toys, crafts, pets and seasonal goods. The Company offers branded merchandise, such as Peacock Alley, Sferra, Lenox, Waterford and Hartmann. In addition to branded goods, it also carries home furnishings items made around the world. The Company’s stores operate in both primary and secondary locations of the suburban markets, such as strip malls, near its middle and upper-income customers. The Company utilizes distribution center facilities in Dallas, Texas and Phoenix, Arizona.