Dillard's, Inc. (DDS) vs Macy's, Inc. (M)

Dillard's, Inc. and Macy's, Inc. are both Department Stores companies. Dillard's, Inc. is the larger, with a market value of $10.2B against $5.8B — 1.7× the size. Macy's, Inc. trades at the lower P/E: 8.0× against 15.2×. Macy's, Inc. grew revenue faster over the last twelve months: 0.34% against 0.21%. Dillard's, Inc. has the higher net margin (10.3% vs 3.29%) and the higher return on invested capital (35.6% vs 11.8%). Both pay a dividend; Dillard's, Inc. yields more (5.20% vs 3.45%). Across the 22 metrics below, Dillard's, Inc. leads on 12 and Macy's, Inc. on 10.

Valuation

Metric DDS M Department Stores median
P/E 15.21 8.00 —
P/S 1.57 0.26 0.17
P/B 4.89 1.21 0.65
Price to free cash flow 15.83 5.39 2.20
EV/EBITDA 10.45 3.61 3.92
EV/Sales 1.44 0.32 0.32
Earnings yield 6.57% 12.50% 12.50%
Free cash flow yield 6.32% 18.55% 32.05%

Profitability

Metric DDS M Department Stores median
Gross margin 41.21% 40.69% 40.69%
Operating margin 11.11% 5.02% 5.02%
Net margin 10.33% 3.29% 3.00%
Free cash flow margin 9.93% 4.86% 5.89%
Return on equity 33.75% 15.97% 7.41%
Return on assets 18.34% 4.79% 2.97%
Return on invested capital 35.64% 11.77% 5.97%

Growth

Metric DDS M Department Stores median
Revenue growth (TTM) 0.21% 0.34% 0.34%
EPS growth (last fiscal year) (1.09%) 12.08% —
Revenue growth, 5-year CAGR 8.16% 4.56% —
Net income growth, 5-year CAGR 0.00% 0.00% —

Health

Metric DDS M Department Stores median
Debt to equity 0.20 0.49 0.46
Current ratio 3.03 1.59 1.21
Net debt to EBITDA (0.63) 0.61 0.81

Dividend

Metric DDS M Department Stores median
Dividend yield 5.20% 3.45% —
Payout ratio 0.02 0.24 —

Size

Metric DDS M Department Stores median
Market cap 10.18b 5.82b 2.02b

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