Dillard's vs Nordstrom

Dillard's and Nordstrom are two prominent retailers in the fashion industry with their own unique approaches to selling luxury goods. Dillard's, known for its Southern charm and focus on traditional department store offerings, has faced challenges in adapting to the changing retail landscape. On the other hand, Nordstrom has positioned itself as a leader in customer service and innovation, with a strong online presence and loyal customer base. Both companies have experienced fluctuations in their stock prices, making them interesting options for investors to consider.

Dillard's or Nordstrom?

When comparing Dillard's and Nordstrom, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Dillard's and Nordstrom.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Dillard's has a dividend yield of 5.58%, while Nordstrom has a dividend yield of 3.95%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Dillard's reports a 5-year dividend growth of 120.61% year and a payout ratio of 51.48%. On the other hand, Nordstrom reports a 5-year dividend growth of -12.48% year and a payout ratio of 43.66%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Dillard's P/E ratio at 9.26 and Nordstrom's P/E ratio at 13.91. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Dillard's P/B ratio is 3.14 while Nordstrom's P/B ratio is 4.17.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Dillard's has seen a 5-year revenue growth of 0.75%, while Nordstrom's is -0.04%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Dillard's's ROE at 36.01% and Nordstrom's ROE at 33.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $358.22 for Dillard's and $22.78 for Nordstrom. Over the past year, Dillard's's prices ranged from $286.39 to $476.48, with a yearly change of 66.37%. Nordstrom's prices fluctuated between $12.88 and $24.19, with a yearly change of 87.81%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.