Head-To-Head Contrast: Dillard’s (DDS) vs. The Competition

Dillard’s (NYSE:DDS) is one of 142 public companies in the “Broadline Retail” industry, but how does it weigh in compared to its rivals? We will compare Dillard’s to related companies based on the strength of its analyst recommendations, valuation, risk, profitability, earnings, institutional ownership and dividends.

Dividends

Dillard’s pays an annual dividend of $1.20 per share and has a dividend yield of 0.2%. Dillard’s pays out 2.9% of its earnings in the form of a dividend. As a group, “Broadline Retail” companies pay a dividend yield of 31.9% and pay out 11.5% of their earnings in the form of a dividend. Dillard’s has increased its dividend for 14 consecutive years.

Volatility & Risk

Dillard’s has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Dillard’s’ rivals have a beta of -1.27, suggesting that their average stock price is 227% less volatile than the S&P 500.

Insider and Institutional Ownership

67.2% of Dillard’s shares are held by institutional investors. Comparatively, 44.4% of shares of all “Broadline Retail” companies are held by institutional investors. 34.8% of Dillard’s shares are held by insiders. Comparatively, 24.0% of shares of all “Broadline Retail” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Dillard’s and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dillard’s	2	3	0	0	1.60
Dillard’s Competitors	1354	5317	10701	295	2.56

Dillard’s currently has a consensus price target of $521.33, suggesting a potential downside of 15.03%. As a group, “Broadline Retail” companies have a potential upside of 18.33%. Given Dillard’s’ rivals stronger consensus rating and higher possible upside, analysts plainly believe Dillard’s has less favorable growth aspects than its rivals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dillard’s	10.09%	31.43%	15.63%
Dillard’s Competitors	-3.17%	-29.79%	-1.46%

Valuation & Earnings

This table compares Dillard’s and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Dillard’s	$6.47 billion	$570.19 million	14.59
Dillard’s Competitors	$22.54 billion	$1.73 billion	-220.39

Dillard’s’ rivals have higher revenue and earnings than Dillard’s. Dillard’s is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Dillard’s beats its rivals on 8 of the 15 factors compared.

Dillard’s Company Profile

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.