a.k.a. Brands (NYSE:AKA – Get Free Report) and Ross Stores (NASDAQ:ROST – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.
Institutional & Insider Ownership
55.3% of a.k.a. Brands shares are held by institutional investors. Comparatively, 86.9% of Ross Stores shares are held by institutional investors. 18.2% of a.k.a. Brands shares are held by insiders. Comparatively, 2.1% of Ross Stores shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent recommendations for a.k.a. Brands and Ross Stores, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| a.k.a. Brands | 1 | 1 | 0 | 0 | 1.50 |
| Ross Stores | 0 | 4 | 16 | 1 | 2.86 |
Ross Stores has a consensus target price of $277.72, suggesting a potential upside of 17.92%. Given Ross Stores’ stronger consensus rating and higher possible upside, analysts plainly believe Ross Stores is more favorable than a.k.a. Brands.
Risk and Volatility
a.k.a. Brands has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Ross Stores has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.
Earnings & Valuation
This table compares a.k.a. Brands and Ross Stores”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| a.k.a. Brands | $600.21 million | 0.18 | -$31.43 million | ($2.72) | -3.71 |
| Ross Stores | $22.75 billion | 3.31 | $2.15 billion | $8.26 | 28.51 |
Ross Stores has higher revenue and earnings than a.k.a. Brands. a.k.a. Brands is trading at a lower price-to-earnings ratio than Ross Stores, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares a.k.a. Brands and Ross Stores’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| a.k.a. Brands | -4.78% | -24.58% | -5.89% |
| Ross Stores | 10.85% | 39.29% | 15.79% |
Summary
Ross Stores beats a.k.a. Brands on 13 of the 15 factors compared between the two stocks.
About a.k.a. Brands
a.k.a. Brands Holding Corp. operates a portfolio of online fashion brands in the United States, Australia, and internationally. The company offers streetwear apparel, dresses, tops, bottoms, shoes, headwear, and accessories through its online stores under the Princess Polly, Petal & Pup, Culture Kings, and mnml brands. It also operates physical stores under the Culture Kings brand. The company was founded in 2018 and is headquartered in San Francisco, California.
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.
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