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MAR vs ROST

MAR
Marriott International, Inc.
NEUTRAL
Price
$285.72
Market Cap
$77.13B
Sector
Consumer Cyclical
AI Confidence
72%
ROST
Ross Stores, Inc.
NEUTRAL
Price
$216.63
Market Cap
$70.45B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
MAR
30.11
ROST
32.72
Forward P/E
MAR
26.95
ROST
26.79
P/B Ratio
MAR
-24.68
ROST
11.19
P/S Ratio
MAR
11.22
ROST
3.1
EV/EBITDA
MAR
20.19
ROST
21.72

Profitability

Gross Margin
MAR
81.55%
ROST
27.71%
Operating Margin
MAR
65.93%
ROST
12.27%
Profit Margin
MAR
37.98%
ROST
9.43%
ROE
MAR
--
ROST
36.68%
ROA
MAR
9.64%
ROST
11.11%

Growth

Revenue Growth
MAR
5.6%
ROST
12.2%
Earnings Growth
MAR
29.0%
ROST
11.5%

Financial Health

Debt/Equity
MAR
--
ROST
0.84
Current Ratio
MAR
0.47
ROST
1.58
Quick Ratio
MAR
0.43
ROST
0.99

Dividends

Dividend Yield
MAR
0.94%
ROST
0.85%
Payout Ratio
MAR
27.43%
ROST
24.51%

AI Verdict

MAR NEUTRAL

Marriott International trades at a premium valuation with strong historical profitability and consistent earnings beats, supported by resilient cash flow generation and a disciplined capital return policy. However, near-term earnings growth has decelerated, with Q/Q EPS declining 6.8%, while insider selling worth $28.75M over the past six months raises caution. The stock's price momentum has lagged over the past year (+2.3%) despite solid long-term returns (+138.8% over 5Y), and its negative Price/Book ratio due to accumulated deficits undermines traditional valuation frameworks. Relative to Consumer Cyclical peers, MAR exhibits superior margins and lower leverage but trades at a steep P/E of 30x versus sector average of 61.5x, reflecting quality yet limited upside per analyst target of $290.08.

Strengths
Exceptional profitability with operating margin of 65.93% and gross margin of 81.55%, significantly above sector average profit margin of 8.54%
Consistent earnings outperformance: 21 beats in last 25 quarters, including 3 of last 4 quarters above estimates
Strong free cash flow conversion implied by high operating margin and low capex business model (asset-light franchising)
Risks
Negative Price/Book ratio (-24.68) indicating accumulated equity deficits, raising structural balance sheet concerns
Decelerating earnings growth: Q/Q EPS down 6.8% despite YoY increase of 19.3%, signaling near-term headwinds
Elevated P/E of 30.1x vs sector average of 61.5x, but unattractive on growth-adjusted basis given moderate 5.6% revenue growth
ROST NEUTRAL

ROST shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Strong ROE of 36.7%
Risks
High valuation with P/E of 32.7
Premium vs Graham Number ($53.69)

Compare Another Pair

MAR vs ROST: Head-to-Head Comparison

This page compares Marriott International, Inc. (MAR) and Ross Stores, Inc. (ROST) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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