Ross Stores Inc (ROST)vsVertex Pharmaceuticals Inc (VRTX)
ROST
Ross Stores Inc
$225.81
+0.59%
CONSUMER CYCLICAL · Cap: $73.04B
VRTX
Vertex Pharmaceuticals Inc
$429.82
+1.13%
HEALTHCARE · Cap: $107.87B
Smart Verdict
WallStSmart Research — data-driven comparison
Ross Stores Inc generates 86% more annual revenue ($22.75B vs $12.22B). VRTX leads profitability with a 35.5% profit margin vs 9.4%. VRTX appears more attractively valued with a PEG of 2.10. VRTX earns a higher WallStSmart Score of 66/100 (B-).
ROST
Buy56
out of 100
Grade: C
VRTX
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-4.9%
Fair Value
$183.53
Current Price
$225.81
$42.28 premium
Margin of Safety
+57.2%
Fair Value
$992.87
Current Price
$429.82
$563.05 discount
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
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 38.1%
Earnings expanding 61.4% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 24 in profit
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
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 : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 35.5% and operating margin at 38.1%.
Bear Case : ROST
The primary concerns for ROST are P/E Ratio, Price/Book, PEG Ratio.
Bear Case : VRTX
The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
ROST profiles as a value stock while VRTX is a mature play — different risk/reward profiles.
ROST carries more volatility with a beta of 0.88 — expect wider price swings.
ROST is growing revenue faster at 12.2% — sustainability is the question.
VRTX generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
VRTX scores higher overall (66/100 vs 56/100), backed by strong 35.5% margins. Both earn "Strong 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 →Vertex Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.
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