M vs. DDS, JWN, KSS, BURL, QSR, CVNA, BLDR, ULTA, WSM, and DPZ
Should you be buying Macy's stock or one of its competitors? The main competitors of Macy's include Dillard's (DDS), Nordstrom (JWN), Kohl's (KSS), Burlington Stores (BURL), Restaurant Brands International (QSR), Carvana (CVNA), Builders FirstSource (BLDR), Ulta Beauty (ULTA), Williams-Sonoma (WSM), and Domino's Pizza (DPZ). These companies are all part of the "retail/wholesale" sector.
Macy's (NYSE:M) and Dillard's (NYSE:DDS) are both mid-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their community ranking, analyst recommendations, risk, valuation, dividends, earnings, profitability, media sentiment and institutional ownership.
Dillard's has a net margin of 10.68% compared to Macy's' net margin of 0.05%. Dillard's' return on equity of 39.41% beat Macy's' return on equity.
Macy's has a beta of 2.16, meaning that its stock price is 116% more volatile than the S&P 500. Comparatively, Dillard's has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.
87.4% of Macy's shares are owned by institutional investors. Comparatively, 67.2% of Dillard's shares are owned by institutional investors. 2.8% of Macy's shares are owned by insiders. Comparatively, 33.8% of Dillard's shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Macy's pays an annual dividend of $0.69 per share and has a dividend yield of 3.5%. Dillard's pays an annual dividend of $1.00 per share and has a dividend yield of 0.2%. Macy's pays out 2,300.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dillard's pays out 2.3% of its earnings in the form of a dividend.
Macy's presently has a consensus price target of $17.73, indicating a potential downside of 9.00%. Dillard's has a consensus price target of $332.50, indicating a potential downside of 25.67%. Given Macy's' stronger consensus rating and higher possible upside, analysts clearly believe Macy's is more favorable than Dillard's.
Dillard's has lower revenue, but higher earnings than Macy's. Dillard's is trading at a lower price-to-earnings ratio than Macy's, indicating that it is currently the more affordable of the two stocks.
Macy's received 502 more outperform votes than Dillard's when rated by MarketBeat users. However, 60.46% of users gave Dillard's an outperform vote while only 59.46% of users gave Macy's an outperform vote.
In the previous week, Macy's had 6 more articles in the media than Dillard's. MarketBeat recorded 8 mentions for Macy's and 2 mentions for Dillard's. Dillard's' average media sentiment score of 0.85 beat Macy's' score of 0.82 indicating that Dillard's is being referred to more favorably in the news media.
Summary
Macy's and Dillard's tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding M and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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