Nordstrom (NYSE: JWN) and Debenhams (OTCMKTS:DBHSY) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.
This table compares Nordstrom and Debenhams’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Nordstrom pays an annual dividend of $1.48 per share and has a dividend yield of 3.2%. Debenhams pays an annual dividend of $0.17 per share and has a dividend yield of 13.8%. Nordstrom pays out 57.4% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and target prices for Nordstrom and Debenhams, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nordstrom currently has a consensus price target of $49.31, indicating a potential upside of 6.37%. Given Nordstrom’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Nordstrom is more favorable than Debenhams.
Valuation & Earnings
This table compares Nordstrom and Debenhams’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nordstrom||$15.14 billion||0.51||$437.00 million||$2.58||17.97|
|Debenhams||$2.96 billion||0.13||$61.77 million||N/A||N/A|
Nordstrom has higher revenue and earnings than Debenhams.
Institutional & Insider Ownership
58.8% of Nordstrom shares are owned by institutional investors. Comparatively, 0.1% of Debenhams shares are owned by institutional investors. 7.3% of Nordstrom shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Risk & Volatility
Nordstrom has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Debenhams has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.
Nordstrom beats Debenhams on 12 of the 14 factors compared between the two stocks.
Nordstrom Company Profile
Nordstrom, Inc. is a fashion specialty retailer in the United States. The Company’s segments include Retail and Credit. As of March 20, 2017, the Company operated 344 the United States stores located in 40 states as well as an e-commerce business. The Company also offers its customers a variety of payment products and services, including credit and debit cards. As of March 20, 2017, the Retail segment included its 117 Nordstrom-branded full-line stores in the United States and Nordstrom.com, 216 off-price Nordstrom Rack stores, five Canada full-line stores, Nordstromrack.com/HauteLook, seven Trunk Club clubhouses and TrunkClub.com, two Jeffrey boutiques and two clearance stores that operate under the name Last Chance. The Company, through Credit segment, allows its customers to access a range of payment products and services, including a Nordstrom-branded private label card, approximately two Nordstrom-branded Visa credit cards and a debit card for Nordstrom purchases.
Debenhams Company Profile
Debenhams plc, through its subsidiaries, operates and franchises a range of department stores in the United Kingdom, the Republic of Ireland, Denmark, and internationally. The company offers products in the categories of women's wear, men's wear, children's wear, lingerie, accessories, beauty, gift, home, furniture, electrical, and others. Its principal brands include The Collection, Mantaray, Maine New England, and Red Herring. The company also operates in-store cafes and restaurants. It serves customers online and through its 246 department and 63 franchise stores in 60 countries. Debenhams plc was founded in 1778 and is headquartered in London, the United Kingdom.
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