JWN vs. DDS, M, KSS, GPS, ANF, AEO, URBN, BKE, LE, and DXLG
Should you be buying Nordstrom stock or one of its competitors? The main competitors of Nordstrom include Dillard's (DDS), Macy's (M), Kohl's (KSS), GAP (GPS), Abercrombie & Fitch (ANF), American Eagle Outfitters (AEO), Urban Outfitters (URBN), Buckle (BKE), Lands' End (LE), and Destination XL Group (DXLG). These companies are all part of the "retail/wholesale" sector.
Nordstrom (NYSE:JWN) and Dillard's (NYSE:DDS) are both mid-cap retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, media sentiment, profitability, dividends, community ranking, earnings, risk and institutional ownership.
Nordstrom has a beta of 2.58, indicating that its share price is 158% more volatile than the S&P 500. Comparatively, Dillard's has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.
Nordstrom received 573 more outperform votes than Dillard's when rated by MarketBeat users. However, 60.46% of users gave Dillard's an outperform vote while only 58.57% of users gave Nordstrom an outperform vote.
Nordstrom pays an annual dividend of $0.76 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%. Nordstrom pays out 41.5% of its earnings in the form of a dividend. Dillard's pays out 2.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Nordstrom currently has a consensus target price of $17.42, suggesting a potential downside of 18.95%. Dillard's has a consensus target price of $332.50, suggesting a potential downside of 22.44%. Given Nordstrom's stronger consensus rating and higher probable upside, equities research analysts plainly believe Nordstrom is more favorable than Dillard's.
Dillard's has lower revenue, but higher earnings than Nordstrom. Dillard's is trading at a lower price-to-earnings ratio than Nordstrom, indicating that it is currently the more affordable of the two stocks.
Dillard's has a net margin of 10.68% compared to Nordstrom's net margin of -1.35%. Dillard's' return on equity of 39.41% beat Nordstrom's return on equity.
In the previous week, Nordstrom had 6 more articles in the media than Dillard's. MarketBeat recorded 17 mentions for Nordstrom and 11 mentions for Dillard's. Dillard's' average media sentiment score of 0.65 beat Nordstrom's score of 0.26 indicating that Dillard's is being referred to more favorably in the news media.
88.7% of Nordstrom shares are held by institutional investors. Comparatively, 67.2% of Dillard's shares are held by institutional investors. 5.8% of Nordstrom shares are held by company insiders. Comparatively, 33.8% of Dillard's shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Nordstrom 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 JWN 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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