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 business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.
Insider and Institutional Ownership
55.3% of a.k.a. Brands shares are owned by institutional investors. Comparatively, 86.9% of Ross Stores shares are owned by institutional investors. 18.2% of a.k.a. Brands shares are owned by company insiders. Comparatively, 2.1% of Ross Stores shares are owned 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.
Risk and Volatility
a.k.a. Brands has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Ross Stores has a beta of 0.85, suggesting 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 gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| a.k.a. Brands | $600.21 million | 0.19 | -$31.43 million | ($2.48) | -4.17 |
| Ross Stores | $22.75 billion | 3.25 | $2.15 billion | $8.26 | 28.04 |
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.
Analyst Recommendations
This is a summary of recent ratings and target prices 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 | 2 | 1 | 0 | 2.00 |
| Ross Stores | 0 | 3 | 15 | 2 | 2.95 |
a.k.a. Brands presently has a consensus target price of $19.00, suggesting a potential upside of 83.93%. Ross Stores has a consensus target price of $272.06, suggesting a potential upside of 17.47%. Given a.k.a. Brands’ higher possible upside, equities analysts clearly believe a.k.a. Brands is more favorable than Ross Stores.
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 | -4.43% | -20.93% | -5.17% |
| Ross Stores | 10.85% | 39.29% | 15.79% |
Summary
Ross Stores beats a.k.a. Brands on 12 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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