Ross Stores Inc (ROST)vsYum! Brands Inc (YUM)
ROST
Ross Stores Inc
$225.81
+0.59%
CONSUMER CYCLICAL · Cap: $73.04B
YUM
Yum! Brands Inc
$151.95
-3.37%
CONSUMER CYCLICAL · Cap: $43.34B
Smart Verdict
WallStSmart Research — data-driven comparison
Ross Stores Inc generates 168% more annual revenue ($22.75B vs $8.49B). YUM leads profitability with a 20.5% profit margin vs 9.4%. YUM appears more attractively valued with a PEG of 1.93. YUM earns a higher WallStSmart Score of 65/100 (C+).
ROST
Buy56
out of 100
Grade: C
YUM
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-4.8%
Fair Value
$183.65
Current Price
$225.81
$42.16 premium
Margin of Safety
-76.3%
Fair Value
$90.20
Current Price
$151.95
$61.75 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 37 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 31.0%
Earnings expanding 72.2% YoY
Keeps 21 of every $100 in revenue as profit
15.2% revenue growth
Areas to Watch
Premium valuation, high expectations priced in
Trading at 11.8x book value
Expensive relative to growth rate
Expensive relative to growth rate
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ROST
The strongest argument for ROST centers on Return on Equity, Altman Z-Score, Market Cap. Revenue growth of 12.2% demonstrates continued momentum.
Bull Case : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth, Profit Margin. Profitability is solid with margins at 20.5% and operating margin at 31.0%. Revenue growth of 15.2% demonstrates continued momentum.
Bear Case : ROST
The primary concerns for ROST are P/E Ratio, Price/Book, PEG Ratio.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
ROST profiles as a value stock while YUM is a growth play — different risk/reward profiles.
ROST carries more volatility with a beta of 0.88 — expect wider price swings.
YUM is growing revenue faster at 15.2% — sustainability is the question.
ROST generates stronger free cash flow (921M), providing more financial flexibility.
Bottom Line
YUM scores higher overall (65/100 vs 56/100), backed by strong 20.5% margins and 15.2% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Ross Stores Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Ross Stores, Inc., operating under the brand name Ross Dress for Less, is an American chain of discount department stores headquartered in Dublin, California.
Visit Website →Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
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