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 $8.0B against $6.3B — 1.3× the size. Macy's, Inc. trades at the lower P/E: 8.5× 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; Macy's, Inc. yields more (3.15% vs 0.18%). Across the 22 metrics below, Dillard's, Inc. leads on 11 and Macy's, Inc. on 11.

Valuation

Metric DDS M Department Stores median
P/E 15.20 8.48 —
P/S 1.57 0.28 0.17
P/B 4.89 1.28 0.65
Price to free cash flow 15.81 5.71 2.29
EV/EBITDA 10.44 3.79 4.10
EV/Sales 1.44 0.34 0.34
Earnings yield 6.58% 11.79% 11.07%
Free cash flow yield 6.32% 17.50% 30.62%

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% 52.22%
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 0.18% 3.15% —
Payout ratio 0.03 0.28 —

Size

Metric DDS M Department Stores median
Market cap 7.95b 6.33b 2.27b

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