FIVE vs TJX: Which Is the Better Buy in 2026?
Last updated October 2026
Short answer
TJX is the larger of the two ($162.76B market cap): the incumbent the market prices for continued execution (25.52x forward earnings, beta 0.56). FIVE is the smaller challenger ($12.26B), cheaper on forward earnings (20.14x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
FIVE vs TJX: the tie-breaker metrics
Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | FIVE | TJX | What it tells you |
|---|---|---|---|
| Market cap | $12.26B | $162.76B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 20.14 | 25.52 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 19.96 | 27.28 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.94 | 0.56 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 66% of range | 52% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 4.95 | 15.23 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: FIVE is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how FIVE and TJX affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. FIVE and TJX share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined FIVE and TJX exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Five Below (FIVE) do?
Five Below is a discount retailer focused on teens, tweens, and value-seeking parents. The differentiation is the original price-point promise: most products were historically priced at $5 or below, with an expanded $5 Beyond section reaching up to $25 for higher-ticket items (electronics, seasonal furniture, larger toys). The store mix spans candy, party supplies, beauty, tech accessories (phone cases, headphones, chargers), seasonal merchandise, toys, and apparel.
What does TJX Companies (TJX) do?
TJX Companies operates the largest off-price retail business in the world. Brands include T.J. Maxx, Marshalls, HomeGoods, HomeSense, Sierra (off-price outdoor), and TK Maxx internationally. The model is opportunistic buying: TJX merchandise teams buy branded and designer apparel and home goods at deep discounts from manufacturers, brands, and other retailers (overstock, cancellations, end-of-season). These products are then sold at 20-60% below department store prices.
FIVE vs TJX: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- FIVE drivers: Store expansion runway; Five Beyond expansion.
- TJX drivers: Consumer trade-down driving traffic; International expansion.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Margin pressure from sourcing costs (tariffs, freight) and from minimum wage increases in store labor markets. For TJX, if consumer pressure eases significantly, the off-price trade-down dynamic moderates.
FIVE or TJX: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick FIVE if you believe its drivers more; TJX if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the FIVE and TJX guides.
FIVE vs TJX: the full fundamentals
FIVE. Five Below's valuation has expanded again as 2026 growth reaccelerated, with the market cap at about $12.3 billion and the shares up about 16% in 2026. At about 20 times earnings the price assumes continued store growth and stable margins, and consensus sees growth slowing after this fiscal year. Figures are as of October 16, 2026 and change daily.
TJX. At $147.04, TJX trades at about 27 times trailing earnings and about 25 times the ~$5.77 of EPS analysts expect for the fiscal year ending January 2028, a premium to traditional department stores and apparel retailers that reflects the durability of the counter-cyclical model. The premium held through 2026 even as the shares slipped about 5% year to date on the Marmaxx comparable-sales miss. Twenty analysts tracked by Yahoo Finance hold a consensus buy rating with a mean target near $171, and in early October Gordon Haskett raised its target to $175 while Evercore ISI trimmed its to $173.
Headline figures (approximate, October 2026): FIVE shows revenue (ttm) ~$5.3 billion; up ~23% year over year in the quarter ended Aug 1, 2026, gross / operating margin ~37.6% / ~8.9%, latest quarter eps $1.68 vs ~$1.41 consensus (quarter ended Aug 1, 2026); fourth straight beat, current fiscal year outlook consensus EPS ~$10.25 and revenue ~$5.7 billion for the year ending Jan 2027; TJX shows revenue (ttm) ~$62.4B, revenue growth (latest quarter, y/y) ~5.4%, operating / net margin ~10.9% / ~9.7%, net income (ttm) ~$6.1B (EPS ~$5.40).
The bottom line: FIVE vs TJX
FIVE and TJX are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined FIVE and TJX exposure against your real portfolio. It is not an investment adviser.
Wondering how FIVE or TJX fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Five Below with AI
Connect the broker you already use and ask Walnut's AI how FIVE fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between FIVE and TJX?
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Five Below is a discount retailer focused on teens, tweens, and value-seeking parents. TJX Companies operates the largest off-price retail business in the world. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is FIVE or TJX the better stock?
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Neither is universally better. TJX is the larger incumbent; FIVE is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, FIVE or TJX?
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On forward P/E (as of October 2026), FIVE trades at 20.14x and TJX at 25.52x, so FIVE is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both FIVE and TJX?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of FIVE vs TJX?
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FIVE: Margin pressure from sourcing costs (tariffs, freight) and from minimum wage increases in store labor markets. Store opening pace must moderate eventually; until then capex is heavy. Heavy sourcing from China leaves gross margin exposed to any new tariff action. The stock has rerated after a strong 2026, so it is priced for continued growth: consensus expects EPS growth to slow to about 8% in the fiscal year ending January 2028, and a slowdown in comparable-store sales could weigh on a valuation near 20 times earnings. Total debt of about $2.0 billion sits against about $1.2 billion of cash. A patent lawsuit has also been flagged in recent coverage as a valuation risk, though its outcome is uncertain. TJX: If consumer pressure eases significantly, the off-price trade-down dynamic moderates. Inventory sourcing depends on full-price retail health; if traditional retail recovers fully, less excess inventory flows to off-price. Near term, the risk is execution in the core US division: Marmaxx comparable sales missed expectations in the summer quarter and face tougher comparisons in coming quarters, and press coverage in October 2026 questioned whether T.J. Maxx and Marshalls have a customer problem. Valuation leaves less room for misses than at a department store: TJX trades at about 27 times trailing earnings and about 15 times book value, and debt including leases of about $14.3 billion exceeds its ~$6 billion of cash.
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Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell FIVE or TJX; figures are approximate and dated (as of October 2026). Verify current data before investing.