PetMed Express (NASDAQ:PETS – Get Free Report) and TJX Companies (NYSE:TJX – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.
Profitability
This table compares PetMed Express and TJX Companies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PetMed Express | -17.34% | -91.69% | -35.15% |
| TJX Companies | 9.73% | 56.56% | 15.92% |
Institutional & Insider Ownership
73.3% of PetMed Express shares are held by institutional investors. Comparatively, 91.1% of TJX Companies shares are held by institutional investors. 1.3% of PetMed Express shares are held by company insiders. Comparatively, 0.2% of TJX Companies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PetMed Express | 3 | 0 | 0 | 0 | 1.00 |
| TJX Companies | 0 | 4 | 16 | 2 | 2.91 |
PetMed Express currently has a consensus target price of $1.40, indicating a potential upside of 4.87%. TJX Companies has a consensus target price of $171.63, indicating a potential upside of 28.90%. Given TJX Companies’ stronger consensus rating and higher probable upside, analysts clearly believe TJX Companies is more favorable than PetMed Express.
Valuation and Earnings
This table compares PetMed Express and TJX Companies”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PetMed Express | $179.02 million | 0.16 | -$57.29 million | ($1.38) | -0.97 |
| TJX Companies | $60.37 billion | 2.43 | $5.49 billion | $5.41 | 24.61 |
TJX Companies has higher revenue and earnings than PetMed Express. PetMed Express is trading at a lower price-to-earnings ratio than TJX Companies, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
PetMed Express has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, TJX Companies has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.
Summary
TJX Companies beats PetMed Express on 13 of the 15 factors compared between the two stocks.
About PetMed Express
PetMed Express, Inc., together with its subsidiaries, operates as a pet pharmacy in the United States. The company markets prescription and non-prescription pet medications, health products, and other supplies for dogs, cats, and horses. It offers non-prescription medications and supplies, such as flea and tick control products, bone and joint care products, vitamins, treats, nutritional supplements, hygiene products, and household pet supplies; and prescription medications, including heartworm preventatives, flea and tick preventatives, arthritis, dermatitis, thyroid, diabetes, pain medications, heart/blood pressure, and other specialty medications, as well as generic substitutes. The company also sells food, beds, crates, stairs, and other pet supplies. It sells its products through its Internet website; mobile app; customer support center; and direct mail/print, which includes brochures and postcards. The company was incorporated in 1996 and is headquartered in Delray Beach, Florida.
About TJX Companies
The TJX Companies, Inc., together with its subsidiaries, operates as an off-price apparel and home fashions retailer in the United States, Canada, Europe, and Australia. 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, furniture, rugs, lighting products, giftware, soft home products, decorative accessories, tabletop, and cookware, as well as expanded pet, and gourmet food departments; jewelry and accessories; and other merchandise. It offers its products through stores and e-commerce sites. The TJX Companies, Inc. was incorporated in 1962 and is headquartered in Framingham, Massachusetts.
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