M vs. DDS, KSS, BURL, ZGN, AEO, GLBE, SHAK, AAP, SIG, and ABG
Should you be buying Macy's stock or one of its competitors? The main competitors of Macy's include Dillard's (DDS), Kohl's (KSS), Burlington Stores (BURL), Ermenegildo Zegna (ZGN), American Eagle Outfitters (AEO), Global-E Online (GLBE), Shake Shack (SHAK), Advance Auto Parts (AAP), Signet Jewelers (SIG), and Asbury Automotive Group (ABG). These companies are all part of the "retail/wholesale" sector.
Dillard's (NYSE:DDS) and Macy's (NYSE:M) are both mid-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk, analyst recommendations, community ranking and media sentiment.
Dillard's has higher earnings, but lower revenue 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.
67.2% of Dillard's shares are held by institutional investors. Comparatively, 87.4% of Macy's shares are held by institutional investors. 33.8% of Dillard's shares are held by company insiders. Comparatively, 1.5% of Macy's shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Dillard's currently has a consensus target price of $305.67, indicating a potential downside of 29.50%. Macy's has a consensus target price of $17.45, indicating a potential downside of 8.09%. Given Dillard's' stronger consensus rating and higher probable upside, analysts clearly believe Macy's is more favorable than Dillard's.
Dillard's has a net margin of 10.94% compared to Dillard's' net margin of 0.45%. Macy's' return on equity of 40.90% beat Dillard's' return on equity.
Dillard's pays an annual dividend of $1.00 per share and has a dividend yield of 0.2%. Macy's pays an annual dividend of $0.69 per share and has a dividend yield of 3.6%. Dillard's pays out 2.2% of its earnings in the form of a dividend. Macy's pays out 186.5% 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 has increased its dividend for 1 consecutive years and Macy's has increased its dividend for 3 consecutive years. Macy's is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
In the previous week, Macy's had 5 more articles in the media than Dillard's. MarketBeat recorded 7 mentions for Macy's and 2 mentions for Dillard's. Macy's' average media sentiment score of 1.37 beat Dillard's' score of 0.47 indicating that Dillard's is being referred to more favorably in the media.
Macy's received 501 more outperform votes than Dillard's when rated by MarketBeat users. However, 60.54% of users gave Dillard's an outperform vote while only 59.63% of users gave Macy's an outperform vote.
Dillard's has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Macy's has a beta of 2.16, suggesting that its share price is 116% more volatile than the S&P 500.
Summary
Macy's beats Dillard's on 11 of the 21 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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