WallStSmart

The TJX Companies Inc (TJX)vsYum! Brands Inc (YUM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The TJX Companies Inc generates 635% more annual revenue ($60.37B vs $8.21B). YUM leads profitability with a 19.0% profit margin vs 9.1%. YUM appears more attractively valued with a PEG of 1.96. YUM earns a higher WallStSmart Score of 59/100 (C).

TJX

Buy

56

out of 100

Grade: C

Growth: 6.7Profit: 7.5Value: 7.3Quality: 6.3
Piotroski: 5/9Altman Z: 3.30

YUM

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 8.0Value: 10.0Quality: 4.5
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TJXUndervalued (+30.8%)

Margin of Safety

+30.8%

Fair Value

$227.92

Current Price

$159.74

$68.18 discount

UndervaluedFair: $227.92Overvalued
YUMUndervalued (+38.8%)

Margin of Safety

+38.8%

Fair Value

$259.74

Current Price

$159.16

$100.58 discount

UndervaluedFair: $259.74Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TJX5 strengths · Avg: 9.0/10
Return on EquityProfitability
59.1%10/10

Every $100 of equity generates 59 in profit

Altman Z-ScoreHealth
3.3010/10

Safe zone — low bankruptcy risk

Market CapQuality
$177.78B9/10

Large-cap with strong market position

EPS GrowthGrowth
28.3%8/10

Earnings expanding 28.3% YoY

Free Cash FlowQuality
$2.63B8/10

Generating 2.6B in free cash flow

YUM2 strengths · Avg: 9.0/10
Operating MarginProfitability
31.9%10/10

Strong operational efficiency at 31.9%

EPS GrowthGrowth
27.7%8/10

Earnings expanding 27.7% YoY

Areas to Watch

TJX3 concerns · Avg: 3.3/10
P/E RatioValuation
32.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
17.6x4/10

Trading at 17.6x book value

PEG RatioValuation
3.242/10

Expensive relative to growth rate

YUM4 concerns · Avg: 3.5/10
PEG RatioValuation
1.964/10

Expensive relative to growth rate

P/E RatioValuation
28.7x4/10

Moderate valuation

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : TJX

The strongest argument for TJX centers on Return on Equity, Altman Z-Score, Market Cap.

Bull Case : YUM

The strongest argument for YUM centers on Operating Margin, EPS Growth. Profitability is solid with margins at 19.0% and operating margin at 31.9%.

Bear Case : TJX

The primary concerns for TJX 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

TJX profiles as a value stock while YUM is a mature play — different risk/reward profiles.

TJX carries more volatility with a beta of 0.74 — expect wider price swings.

TJX is growing revenue faster at 8.5% — sustainability is the question.

TJX generates stronger free cash flow (2.6B), providing more financial flexibility.

Bottom Line

YUM scores higher overall (59/100 vs 56/100), backed by strong 19.0% margins. TJX offers better value entry with a 30.8% margin of safety. 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.

The TJX Companies Inc

CONSUMER CYCLICAL · APPAREL RETAIL · USA

The TJX Companies, Inc. (abbreviated TJX) is an American multinational off-price department store corporation, headquartered in Framingham, Massachusetts.

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.

Want to dig deeper into these stocks?