Photographer: Victor J. Blue/Bloomberg

TJ Maxx is beating J.C. Penney. On Wall Street that is.

TJX Maxx’s stock has soared 69% over the last five years, while J.C. Penney’s has declined 85%.

J.C. Penney and TJ Maxx are in similar businesses. J. C. Penney sells family apparel and footwear, accessories, jewelry and beauty products, and home furnishings and appliances. It also provides a variety of services, including styling salon, optical, and custom decoration.

TJ Maxx sells family apparel and footwear, accessories, and jewelry; home fashion products, accent furniture, decorative accessories, giftware, cookware, and other merchandise.

But their business models differ in a couple of respects. One of them is the value proposition they offer to customers. J.C. Penney’s value proposition consists of traditional inexpensive merchandise that caters to the average shopper — who seeks something better than the merchandise carried by Wal-Mart, and including more expensive merchandise carried by upscale stores.

The TJ Maxx, Inc. value proposition consists of brand name and designer fashions merchandise that normally sells at prices that range 20%-60% below department and specialty store regular prices.

Another difference in the business model of…