Next vs Marks & Spencer, side by side
Both are long-standing names on British high streets, and both offer clothing and homeware. But their shapes differ. Next runs a disciplined online and catalogue-credit operation and hosts other brands through its own online marketplace, earning fees as well as sales. Marks & Spencer pairs its clothing and home range with a large, higher-margin food business, and is working through a turnaround of its stores.
On our factor screen it looks strongest on growth and momentum, and weakest on value.
On our factor screen it looks strongest on growth and momentum, and weakest on quality.
The numbers, side by side
| Measure |  Next |  Marks & Spencer |
|---|---|---|
| Price | £148.45 | £4.05 |
| Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'. | £16.95B | £8.33B |
| P/E: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth. | 19.9 | 33.8 |
| Div yield: Dividend yield: the yearly dividend as a percentage of the share price - roughly the income you'd earn just from dividends. | 1.8% | 1.0% |
| Revenue growth | 15.3% | 27.2% |
| 1Y: How much the share price has moved over the past year. | +20% | +18% |
More measures
| Forward P/E: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth. | 17.1 | 11.5 |
|---|---|---|
| Net margin | 12.9% | 1.5% |
| ROE | 50.8% | 7.8% |
| Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. | 1.04 | 1.01 |
The bolder figure is simply the larger of the two - higher is not automatically good (a higher P/E means more expectation in the price; a higher beta means bigger swings).
How they differ
Next is roughly 2.0x the size of Marks & Spencer by market value. On our factor screen Next currently screens higher on quality, while Marks & Spencer screens higher on value and growth. Marks & Spencer trades on the higher P/E (33.8 vs 19.9), so more expectation is already built into its price.
Descriptive only - how the two compare on today's data, never a verdict on either.
Next, in one line
Next is a British retail giant that sells clothing, footwear, and home products through its high-street shops and a massive online platform.
Read the full Next explainer →Marks & Spencer, in one line
Marks & Spencer is a classic British retailer selling high-quality food, clothing, and home goods across its high-street stores and online platform.
Read the full Marks & Spencer explainer →What to weigh
If dividend income matters to you, the yields differ (1.8% Next vs 1.0% Marks & Spencer). These are facts to understand, not a verdict - read each full explainer before deciding anything.
Common questions
Are Next and M&S the same kind of business?
Both are UK retailers offering clothing and homeware, but M&S also runs a large food business, which Next does not. Next earns extra income by running an online marketplace and credit account for shoppers and other brands, so a chunk of its profit comes from services rather than only its own products.
Why might their share prices move differently?
Because their profits come from different places. M&S depends partly on food shopping, which tends to stay steady, plus a clothing turnaround. Next leans on online sales, credit income and marketplace fees. News about consumer spending affects both, but a food-price story or a credit story may hit only one.