LightInTheBox (NYSE:LITB) & Dillard’s (NYSE:DDS) Head to Head Analysis

LightInTheBox (NYSE:LITB) and Dillard’s (NYSE:DDS) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

56.8% of LightInTheBox shares are owned by institutional investors. Comparatively, 67.2% of Dillard’s shares are owned by institutional investors. 62.2% of LightInTheBox shares are owned by insiders. Comparatively, 34.8% of Dillard’s shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares LightInTheBox and Dillard’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LightInTheBox	3.91%	-231.00%	13.47%
Dillard’s	10.48%	31.88%	16.20%

Earnings & Valuation

This table compares LightInTheBox and Dillard’s”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LightInTheBox	$224.32 million	0.24	$8.28 million	$0.48	6.38
Dillard’s	$6.47 billion	1.65	$570.19 million	$43.65	15.67

Dillard’s has higher revenue and earnings than LightInTheBox. LightInTheBox is trading at a lower price-to-earnings ratio than Dillard’s, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

LightInTheBox has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500. Comparatively, Dillard’s has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for LightInTheBox and Dillard’s, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LightInTheBox	0	1	0	0	2.00
Dillard’s	2	3	0	0	1.60

Dillard’s has a consensus price target of $545.67, suggesting a potential downside of 20.21%. Given Dillard’s’ higher probable upside, analysts plainly believe Dillard’s is more favorable than LightInTheBox.

Summary

Dillard’s beats LightInTheBox on 11 of the 13 factors compared between the two stocks.

About LightInTheBox

LightInTheBox Holding Co., Ltd., together with its subsidiaries, operates as an online retailer that delivers products directly to its consumers worldwide. The company provides apparel products; and other general merchandise products, such as small accessories and gadgets, home garden, toys and hobbies, electronics and communication devices, and other products. It also offers supplier chain management, research and development, customer, marketing, warehouse management, local delivery, and fulfillment services, as well as engages in the product sourcing, marketing, and operation of its websites and mobile applications. The company provides its products through www.lightinthebox.com and www.ezbuy.sg, and other websites and mobile applications. LightInTheBox Holding Co., Ltd. was founded in 2007 and is based in Singapore.

About Dillard’s

Dillard’s, Inc. engages in the retail of fashion apparel, cosmetics, and home furnishings, and other consumer goods. It operates through the Retail Operations and Construction segments. The Retail Operations segment comprises sells cosmetics, ladies’ apparel, ladies’ accessories and lingerie, juniors’ and children’s apparel, men’s apparel and accessories, shoes, and home and furniture products. The Construction segment constructs and remodels stores through CDI Contractors, LLC. The company was founded by William Thomas Dillard in 1938 and is headquartered in Little Rock, AR.